1) King waterbeds has an annual cash dividend policy that raises the dividen each year by 4%. The most recent dividend, Div0, was $0.45 per share. What is the stocks price if

a) an investor wants a return of 7%?

b) an investor wants a return of 10%?

c) an investor wants a return of 11%?

d) an investor wants a return of 13%?

e) an investor wants a return of 17%?

2) Sietz glassware is trying to determine the growth rate for an annual cash dividend. The most recent dividend, Div0, was $0.70 per share. The stocks target return rate is 11%. What is the stocks price if

a) the annual growth rate is 3%?

b) the annual growth rate is 4%?

c) the annual growth rate is 7%?

d) the annual growth rate is 8%?

e) the annual growth rate is 9%?

3) Staton-Smith software is a new company that will not pay dividends for the first five years of operation. It will then institute an annual cash dividend policy of $3.50 with a constant growth rate of 4%, with the first dividend at the end of year six. The company will be in business for 25 years total. What is the stocks price if an investor wants

a) a return of 11%?

b) a return of 13%?

c) a return of 23%?

d) a return of 35%?