1. Last Wave Entertainments stock is selling at $64.91 in the market. The required rate of return on this stock is 13.5%. If they just paid a dividend of $2.30, what is the expected growth rate of the company?

2. Going for Broke LLC is downsizing. The company has announced that it will reduce the dividend paid to shareholders by 4.5% per year until it reach zero. When the dividend reaches zero, the company will liquidate and cease to exist. The last dividend paid out was $4.25. Your required rate of return on the stock is 16%. At what price would you purchase the stock?

3. UAF corp. is expected to pay dividends of $.75, $1.10 and $1.65 for the next three years and then pay a level dividend of $1.85 forever. If your required rate of return for the company is 12.75% what is the price you would pay for this stock?

4. Yamato Inc. is going through a period of super growth. Its next dividend will be a $1 and will grow at 20% for the next three years. After that the companys dividend will grow at a more modest 3.8% per year. If your discount rate for the firm is 9.65% how much would you be willing to pay today?

5. MacroHard Software is growing rapidly. They have told investors that they will not pay a dividend for the next ten years. But in ten years time they will pay a $4.45 dividend and then grow the dividend by 2.9% per year every year thereafter. If your discount rate for this stock is 17.2%, how much would you pay for the stock at this time?

6. Pet Go Corp. just had its IPO two years ago. In an effort to boost confidence in the company it announces a dividend policy. Market reaction is positive and the company is currently trading at $29.26. If we know the company said it would pay a dividend of $1.85 next year and $2 in year two. They also said they would pay a dividend in year three and grow that dividend at a constant rate of 2% per year thereafter. If we know the market discount rate for this firm is 13.6%, what must the third year dividend payment be?