2) An analyst has made the following estimates for a stock: dividends over the next year $.60 long-term growth rate 13% Intrinsic value $24 per share The current price of the shares is $22. Assuming the stock price moves to intrinsic value over the next year, what is the expected return on the stock? 3) What would an investor be willing to pay for a share of preferred stock that pays $7 per share annual dividend if the yield on the preferred was 7.75%? 4) An analyst project that the stock will pay a $2 per share dividend at the end of next year and will sell for $40 at the end of next year. If the required rate of return is 15%, what is the value of the stock today? 5) A stock paid a $1.00 per share dividend last year. The risk-free rate is 5%; the expected return on the market is 12%; and the stocks beta is 1.5. Your forecast is for dividends to grow at 5% forever, what is the value of the stock? 6) Your forecast for a company is that it will pay dividends at the end of year one and two of $1.25 and $1.56 respectively. You expect dividends to grow at a 5% rate thereafter. The required return is 11%. What is the stocks intrinsic value?