18. 19. 20 Nonconstant Growth Janicek Corp. is experiencing rapid growth. Dividends are expected to grow at 30 percent per year during the next three years, 18 percent over the following year, and then 8 percent per year indefinitely. The required return on this stock is 14 percent, and the stock currently sells for $70.00 per share. What is the projected dividend for the coming year? Finding the Dividend Hollin Corporation stock currently sells for $50 per share. The mar- ket requires a 14 percent return on the firm's stock. If the company maintains a constant 8 per- cent growth rate in dividends, what was the most recent dividend per share paid on the stock? Valuing Preferred Stock Mark Bank just issued some new preferred stock. The issue will pay a $9 annual dividend in perpetuity, beginning six years from now. If the market requires a 7 percent return on this investment, how much does a share of preferred stock cost today? Negative Growth Calamity Mining Company's iron ore reserves are being depleted, and its costs of recovering a declining quantity of ore are rising each year. As a result, the company's earnings are declining at a rate of 10 percent per year. If the dividend per share to be paid tomorrow is $5 and the required rate of return is 14 percent, what is the value of the firm's stock? Assume that the dividend payments are based on a fixed percentage of the firm's earnings. 21