1. Minnick Enterprises recently paid a dividend, D₀, of $2.00. It expects to have nonconstant growth of 20 percent for 2 years followed by a constant rate of 6 percent thereafter. The firm's required return is 10.5 percent. What is the stock's intrinsic value today?

2.The beta of Stock B is -0.6 (indicating that its returns rise when returns on most other stocks fall). If the risk-free rate is 5.8 percent and the expected rate of return on an average stock is 9.1 percent, what is the required rate of return on Stock B?

3.Sommerfield Mining Company's reserves are being depleted, so its sales are falling. As a result, the company's earnings and dividends are declining at the constant rate of 5 percent per year. If D₀= $6.00 and r_s= 12%, what is the value of Sommerfield Mining's stock?