1.Bart Inc just paid a dividend of $2 per share (D₀ = 2). It is estimated that the companys dividend will grow 6% per year for the next 2 years and then 4% thereafter. What is the expected dividend per share for each of the next 4 years?

2.In the previous problem, find the stocks intrinsic value if the required rate of return is 12%.

3.Homer Enterprise is expected to pay a $3.50 dividend one year from now (D₁ = 3.50), and thereafter its dividend is expected to grow at 10% per year forever. If the required rate of return on its stock is 16%, what is the stocks intrinsic value?

4.Common stock of Maggies Binkies Corporation is currently selling at $40 per share. The stock is expected to pay a dividend of $2.00 per share at the end of the year (D₁ = $2.00), and the dividend is expected to grow at a constant rate of 6% per year. What is the required rate of return?

5.Bleeding Gum Saxophone, Inc just paid a $1.50 dividend (D₀ = 1.50). It is expected to grow at 15% over the next year and then at 5% per year thereafter. The required rate of return on the stock is 8%. What is your estimate of the stocks current price?

6.Several years ago, Burns & Smithers Antiques issued preferred stock with a stated annual dividend of 10% of its $100 par value. Preferred stock of this type currently yields 5%. Assume dividends are paid annually.

a.What is your estimate of the price of this preferred stock?

b.Suppose interest rate levels have risen to the point where the preferred stock now yields 8%. What would be the new estimated value of this preferred stock?