1.The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.44 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year indefinitely. If investors require an 8 percent return on The Jackson-Timberlake Wardrobe Co. stock, the current price is $_______ . The price will be$________ in 12 years.

2.The next dividend payment by Hot Wings, Inc., will be $2.75 per share. The dividends are anticipated to maintain a 3 percent growth rate forever. If the stock currently sells for $43 per share, the required return is _________percent.

3.Metroplex Corporation will pay a $3.40 per share dividend next year. The company pledges to increase its dividend by 5.0 percent per year indefinitely. If you require an 14.4 percent return on your investment, you will pay $ __________for the company's stock today.

4.Resnor, Inc., has an issue of preferred stock outstanding that pays a $10.75 dividend every year in perpetuity. If this issue currently sells for $80 per share, the required return is ___________percent.

5.Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 7 years because the firm needs to plow back its earnings to fuel growth. The company will pay a $12 per share dividend in 8 years and will increase the dividend by 6 percent per year thereafter. If the required return on this stock is 9 percent, the current share price is $__________.

6. Far Side Corporation is expected to pay the following dividends over the next four years: $11, $8, $6, and $2. Afterward, the company pledges to maintain a constant 5 percent growth rate in dividends forever. If the required return on the stock is 14 percent, the current share price is $___________.

7.Marcel Co. is growing quickly. Dividends are expected to grow at a 23 percent rate for the next 3 years, with the growth rate falling off to a constant 8 percent thereafter. If the required return is 11 percent and the company just paid a $2.40 dividend, the current share price is $___________.

8.

Maloney, Inc., has an odd dividend policy. The company has just paid a dividend of $8 per share and has announced that it will increase the dividend by $4 per share for each of the next five years, and then never pay another dividend. If you require a return of 11 percent on the companys stock, how much will you pay for a share today?(Round your answer to 2 decimal places. (e.g., 32.16))

Current share price

$

9.

Teder Corporation stock currently sells for $105 per share. The market requires a 10.5 percent return on the firm's stock. If the company maintains a constant 5 percent growth rate in dividends, the most recent dividend per share paid on the stock was $____________.

10.

Janicex Co. is growing quickly. Dividends are expected to grow at a rate of 22 percent for the next three years, with the growth rate falling off to a constant 6 percent thereafter. If the required return is 12 percent and the company just paid a dividend of $3.25, what is the current share price?

Current share price

$

11.Storico Co. just paid a dividend of $2.50 per share. The company will increase its dividend by 16 percent next year and will then reduce its dividend growth rate by 4 percentage points per year until it reaches the industry average of 4 percent dividend growth, after which the company will keep a constant growth rate forever. If the required return on Storico stock is 15 percent, a share of stock will sell for $______________today.