1.

The dividend for Should I, Inc., is currently $1.85 per share. It is expected to grow at 24 percent next year and then decline linearly to a 6 percent perpetual rate beginning in four years. If you require a 17 percent return on the stock, what is the most you would pay per share? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Price per share

$

2.

Could I Industries just paid a dividend of $1.15 per share. The dividends are expected to grow at a 18 percent rate for the next 6 years and then level off to a 7 percent growth rate indefinitely. If the required return is 15 percent, what is the value of the stock today? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Price

$

3.

Xytex Products just paid a dividend of $2.62 per share, and the stock currently sells for $36. If the discount rate is 15 percent, what is the dividend growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Growth rate

%