1 Assume Gillette Corporation will pay an annual dividend of $0.61 one year from now. Analysts expect this dividend to grow at 12.6% per year thereafter until the 5th year. Thereafter, growth will level off at 2.1% per year. According to the dividend-discount model, what is the value of a share of Gillette stock if the firm's equity cost of capital is 8.1%? The value of Gillette's stock is $]). (Round to the nearest cent.) 2 CX Enterprises has the following expected dividends: $1.05 in one year $1.24 in two years, and $1.32 in three years. After that, its dividends are expected to grow at 4.2% per year forever (so that year 4's dividend will be 4.2% more than $1.32 and so on). If CX's equity cost of capital is 11.6%, what is the current price of its stock? The price of the stock will be $ . (Round to the nearest cent.) 3 Assume Highline Company has just paid an annual dividend of $1.05. Analysts are predicting an 10.6% per year growth rate in earnings over the next five years. After then, Highline's earnings are expected to grow at the current industry average of 4.8% per year. If Highline's equity cost of capital is 9.1% per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Highline stock should sell? The value of Highline's stock is $]. (Round to the nearest cent.) 4. Halliford Corporation expects to have earnings this coming year of $3.182 per share. Halliford plans to retain all of its earnings for the next two years. Then, for the subsequent two years, the firm will retain 49% of its earnings. It will retain 19% of its earnings from that point onward. Each year, retained earnings will be invested in new projects with an expected return of 27.5% per year. Any earnings that are not retained will be paid out as dividends. Assume Halliford's share count remains constant and all earnings growth comes from the investment of retained earings. If Halliford's equity cost of capital is 10.9%, what price would you estimate for Halliford stock? The stock price will be $ . (Round to the nearest cent.)