11. Problem 8-13 Problem Walk-Through Problem 8-13 Nonconstant Growth Stock Valuation Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain all of its earnings. However, investors expect Simpkins to begin paying dividends, with the first dividend of $1.50 coming 3 years from today. The dividend should grow rapidly-at a rate of 80% per year-during Years 4 and 5, After Year 5, the company should grow at a constant rate of 6% per year. If the required return on the stock is 1896, what is the value of the stock today (assume the market is in equilibrium with the required return equal to the expected return)? Round your answer to the nearest cent. Do not round your intermediate computations. 12. Problem 8-14 Problem 8-14 Preferred Stock Valuation Several years ago, Rolen Riders issued preferred stock with a stated annual dividend of 12% of its $100 par value. Preferred stock of this type currently yields 6%. Assume dividends are paid annually. a. What is the estimated value of Rolen's preferred stock? Round your answer to the nearest cent. b. Suppose interest rate levels have risen to the point where the preferred stock now yields 11%, what would be the new estimated value of Rolen's preferred stock? Round your answer to the nearest cent. 13. Problem 8-17 Problem Walk-Through Problem 8-17 Value of Operations Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the next 2 years, respectively; after the second year, FCF is expected to grow at a constant rate of 10%. The company's weighted average cost of capital is 18%. What is the terminal, or horizon, value of operations? (Hint: Find the value of all free cash flows beyond Year 2 discounted back to Year 2.) Round your answer to the nearest cent. a. b. Calculate the value of Kendra's operations. Round your answer to the nearest cent. Round intermediate calculations to two decimal places