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10-12 Christopher Farms Inc. just paid an annual dividend on its common stock of $3.00. If the firm's constant growth rate is 4 percent, and

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10-12 Christopher Farms Inc. just paid an annual dividend on its common stock of $3.00. If the firm's constant growth rate is 4 percent, and investors require a return of 10 percent on the company's common stock, what is the current stock price. 10-16 Assume that Camille's Jewelry Corporation recently paid an annual dividend of $2.00 per share (or DC) on its common stock. Because of exceptionally positive operating results, the firm expects dividends to grow at a supernormal growth rate of 20 percent (or gs) over the next three years. After the end of the three-year supernormal growth period, dividend growth is expected to return to the firm's normal rate of 6 percent (or gn). The investor's required return for Camilles Jewelry Corporation common stock is 12 percent (or Ke). Using the two-stage growth model solve for the firm's current stock price (or PO)

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