6. Dividends of Red Cow, Inc. are expected to grow at a rate of 25 percent for the next three years, with the growth rate falling off to a constant 6 percent thereafter. If the required return is 11 percent, and the company just paid a dividend of $1.15, what is the current share price?

7. Zeph, Inc. has preferred stock. The stock will pay an annual dividend of $19 in perpetuity, beginning 8 years from now. If the market requires a return of 3.3 percent on this investment, how much does a share of preferred stock cost today?

8. Leslie, Inc., currently has an EPS of $1.20 and an earnings growth rate of 5 percent. If the benchmark PE ratio is 17, what isthe target share price five years from now?

9. The next dividend payment by Keidis, Inc., will be $1.64 per share. The dividends are anticipated to maintain a growth rate of 8 percent forever. If the stock currently sells for $31 per share, what is the required return?