1. Shabbir Corp just paid $0.50 dividend per share. The dividend is expected to grow at a constant rate of 6% a year. The required rate of return on the stock is 15%. What is the value per share of SC's stock? 2. Assume that the average firm in the clothing industry is expected to grow at a constant rate of 4% and that its dividend yield is 7%. Your company, Asim Apparel, is about as risky as the average firm in the industry, but it has just successfully completed some new installation work that leads you to expect that its earnings and dividends will grow at a rate of 30% this year and 25% the following year, after which growth should return to the 4% industry average. If the last dividend paid (DO) was $1, what is the value per share of your firm's stock? 3. An analyst gathered the following information about a company, find the intrinsic value of company stock and identify whether the stock is undervalued or overvalued Stock Price Growth rate for next 9 years Growth from year 11 to 20 $ 40.00 16% 11% 10% Growth from year 21 onwards Rate of return 17% Dividend at the end of year 1 $ 2.00 Intrinsic Value "Undervalued" or "Overvalued" W