11) Schnusenberg Corporation just paid a dividend of D0 = $0.75 per share, and that dividend is expected to grow at a constant rate of 6.50% per year in the future. The required rate of return on the stock is 12 percent. What is the company's current stock price?

12) Church Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expects earnings and dividends to grow at a rate of 25% for the next 4 years, after which competition will probably reduce the growth rate in earnings and dividends to zero, i.e., g = 0. The company's last dividend, D0, was $1.25, and its required rate of return is 9.6 percent. What is the current price of the common stock?

13) The Ramirez Company's last dividend was $1.75. Its dividend growth rate is expected to be constant at 25% for 2 years, after which dividends are expected to grow at a rate of 6% forever. Its required return is 12%. What is the best estimate of the current stock price?

14) McDonalds last year EPS was $5.55 and it is expected to grow at 2% for next 2 years and at 1.5% for next 2 years. Year 4 dividend is expected to grow at a 1% in perpetuity. Dividend payout ratio is expected to remain constant at 60%. If cost of equity is 4.1%, what is the best estimate of Mc Donalds stock price?

15) Use the table below, summarized from CFO Magazines 2006 working capital survey to answer this question. Compare Genzymes CCC to that of Quest Diagnostics. What do the CCC for the two companies tell us about their working capital management? Why is Genzymes 2005 CCC different from Quests? Suppose that Genzymes annual sales are $2,734,842,000 and its cost of capital is 15%. If Genzymes CCC drops to the level of Questss, how much savings will Genzyme generate in net working capital and what is the annual benefit of this savings in dollars?

Ratio	Genzyme	Quest Diagnostics
Days Sales Outstanding	81.5	48.6
Days Inventory Outstanding	39.7	5.2
Days Payable Outstanding	12.9	12.8
Cash Conversion Cycle	108.3	40.9