3. USF Inc. paid a $3.90 per share dividend yesterday. The company believes that its dividends will grow by 3.00 percent per year indefinitely. If you require a return of 9 percent on your investment, how much will you pay for the companys stock today?

4. USF Inc. just issued some new preferred stock. The issue will pay an annual dividend of $5.00 in perpetuity. If the market requires a return of 4.25 percent on this investment, how much does a share of preferred stock cost today?

5. USF Inc. has earnings of $2.35 per share. The benchmark price-earnings (PE) ratio for the company is 18. What stock price would you consider appropriate?

6. USF Inc. paid a $3.50 dividend last week. The firm believes the dividend will increase next year by 5%, then 4% the next year, then increase again by 6% the following year. After this, the firm believes that the growth rate of the dividend will normalize at 3%. If you require a 10 percent return, what is the value of the stock today?