1. You are considering buying common stock in Grow On, Inc. The firm yesterday paid a dividend of $8.40. You have projected that dividends will grow at a rate of 9.0% per year indefinitely. If you want an annual return of 16.0%, what is the most you should pay for the stock now?

2. Growing, Inc. is a firm that is experiencing rapid growth. The firm yesterday paid a dividend of $3.40. You believe that dividends will grow at a rate of 19.0% per year for two years, and then at a rate of 7.0% per year thereafter. You expect the stock will sell for $17.17 in two years. You expect an annual rate of return of 22.0% on this investment. If you plan to hold the stock indefinitely, what is the most you would pay for the stock now?

3. Growing, Inc. is a firm that is experiencing rapid growth. The firm yesterday paid a dividend of $7.00. You believe that dividends will grow at a rate of 20.0% per year for three years, and then at a rate of 9.0% per year thereafter. You expect that the stock will sell for $235.44 in three years. You expect an annual rate of return of 16.0% on this investment. If you plan to hold the stock indefinitely, what is the most you would pay for the stock now?

4. You are considering buying common stock in Grow On, Inc. You have calculated that the firm's free cash flow was $5.40 million last year. You project that free cash flow will grow at a rate of 7.0% per year indefinitely. The firm currently has outstanding debt and preferred stock with a total market value of $25.86 million. The firm has 2.44 million shares of common stock outstanding. If the firm's cost of capital is 15.0%, what is the most you should pay per share for the stock now?