1. Stacker Weight Loss currently pays an annual year-end dividend of $1.20 per share. It plans to increase this dividend by 5% next year and maintain it at the new level for the foreseeable future. If the required return on this firms stock is 8%, what is the value of Stackers stock?

2. Common stock value: Constant growth McCracken Roofing Inc. common stock paid a dividend of $1.20 per share last year. The company expects earnings and divi-dends to grow at a rate of 5% per year for the foreseeable future. a. What required rate of return for this stock would result in a price per share of $28? b. If McCracken expects both earnings and dividends to grow at an annual rate of 10%, what required rate of return would result in a price per share of $28?

3. Common stock value: Variable growth Lawrence Industries most recent annual dividend was $1.80 per share (D0 = $1.80), and the firms required return is 11%. Find the market value of Lawrences shares when: a. Dividends are expected to grow at 8% annually for 3 years, followed by a 5% constant annual growth rate in year 4 to infinity. b. Dividends are expected to grow at 8% annually for 3 years, followed by a 0% constant annual growth rate in year 4 to infinity. c. Dividends are expected to grow at 8% annually for 3 years, followed by a 10% constant annual growth rate in year 4 to infinity.