1. Cayuga Products, Inc. anticipates paying the following dividends in each of the next 4 years: Year 1 2 3 4 Dividend $2.20 $3.50 $1.75 $2.00 At the end of the fourth year its value is expected to be $37.40. What should the company sell for today if the return on stocks of similar risk is 11.00%? Round values in intermediate calculations to four decimal places. Round your final answer to 2 decimals. No $ signs.

2. J+J Inc just paid a $3.00 dividend and the company is expected to grow at 4% long into the future. If you require a return of 9% what would you be willing to pay for a share of this company's stock?

1. What is the stocks' intrinsic value? Round your answer to 2 decimals. No $ sign. $ fill in the blank 1
2. The stock is currently selling at $79 a share. Would you purchase this company's stock? (Assume that a share is worth buying when its estimated value is greater or equal to 120% of the market price.) Yes or No (think of why you chose your answer.)

3. Kreigers Inc. recently paid a $3.65 dividend. The company has been growing at a 4% rate for the past several years, but due a new marketing campaign, the growth of the company is expected to be 5%. The stock is currently selling for $71. Similar stocks earn returns ranging from 8% to 10%.

1. Calculate value for a share of the company at interest rate of 8%. Round the answer to two decimal places. Your answer will have 2 decimals. No $ signs $ fill in the blank 1 Calculate value for a share of the company at interest rate of 9%. Round the answer to two decimal places. Your answer will have 2 decimals. No $ signs $ fill in the blank 2 Calculate value for a share of the company at interest rate of 10%. Round the answer to two decimal places. Your answer will have 2 decimals. No $ signs $ fill in the blank 3