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1. Thress Industries just paid a dividend of $3.75 a share (i.e., D0 = $3.75). The dividend is expected to grow 4% a year for

1. Thress Industries just paid a dividend of $3.75 a share (i.e., D0 = $3.75). The dividend is expected to grow 4% a year for the next 3 years and then 14% a year thereafter. What is the expected dividend per share for each of the next 5 years? Round your answers to the nearest cent.

  1. D1 = $
  2. D2 = $
  3. D3 = $
  4. D4 = $
  5. D5 = $

2.Boehm Incorporated is expected to pay a $2.00 per share dividend at the end of this year (i.e., D1 = $2.00). The dividend is expected to grow at a constant rate of 6% a year. The required rate of return on the stock, rs, is 17%. What is the estimated value per share of Boehm's stock? Round your answer to the nearest cent.

3. Woidtke Manufacturing's stock currently sells for $27 a share. The stock just paid a dividend of $3.25 a share (i.e., D0 = $3.25), and the dividend is expected to grow forever at a constant rate of 8% a year. What stock price is expected 1 year from now? Round your answer to the nearest cent. $

What is the estimated required rate of return on Woidtke's stock? Round the answer to three decimal places.

4. Nick's Enchiladas Incorporated has preferred stock outstanding that pays a dividend of $5 at the end of each year. The preferred sells for $55 a share. What is the stock's required rate of return (assume the market is in equilibrium with the required return equal to the expected return)? Round the answer to two decimal places.

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