1) NONCONSTANT GROWTH

Carnes Cosmetics Co.'s stock price is $65.36, and it recently paid a $2.25 dividend. This dividend is expected to grow by 27% for the next 3 years, then grow forever at a constant rate, g; and rs = 15%. At what constant rate is the stock expected to grow after Year 3? Round your answer to two decimal places. Do not round your intermediate calculations.

%

2)

DPS CALCULATION

Weston Corporation just paid a dividend of $1.25 a share (i.e., D0 = $1.25). The dividend is expected to grow 9% a year for the next 3 years and then at 5% a year thereafter. What is the expected dividend per share for each of the next 5 years? Round your answers to two decimal places.

D1 = $ D2 = $ D3 = $ D4 = $ D5 = $

3)

CONSTANT GROWTH VALUATION

Holtzman Clothiers's stock currently sells for $15 a share. It just paid a dividend of $2.75 a share (i.e., D0 = $2.75). The dividend is expected to grow at a constant rate of 6% a year.

What stock price is expected 1 year from now? Round your answer to two decimal places. $

What is the required rate of return? Round your answer to two decimal places. Do not round your intermediate calculations. %