1.The Pancake House perpetual preferred stock always pays a constant annual dividend of $1.25 per share. How much are you willing to pay for one share if you require a 12 percent rate of return? Show calculations.

2.Healthy Foods just paid its annual dividend of $1.45 a share. The firm recently announced that all future dividends will be increased by 2.8 percent annually forever. What is one share of this stock worth to you if you require a 10 percent rate of return? Show calculations.

3.The common stock of Tasty Treats is valued at $10.80 a share. The company increases its dividend by 8 percent annually and it just paid a dividend of $0.20 per share. What is the total rate of return on this stock? A. 8.00 percent B. 9.12 percent C. 9.40 percent D. 9.85 percent E. 10.00 percent

4. Delphin's Marina is expected to pay an annual dividend of $0.58 next year. The stock is selling for $8.53 a share and has a total return of 12 percent. What is the dividend growth rate? Assume constant growth and show calculations.

5. The Market Place recently announced that it will pay annual dividends of $10 in one year, $20 in two years, and $30 in three years from today. After that, the dividends and operations will cease forever. What is the value of this stock today if the required return is 10 percent? Show calculations.

6.The Spoon Restaurant is considering a project with an initial cost of $725,000. Then the project will not produce any cash flows for the first two years. Starting in year three, the project will produce cash inflows of $721,000 a year for three years. This project is risky, so the firm has assigned it a discount rate of 18 percent. What is the project's net present value? Show calculations.