6. Summit Systems will pay a dividend of $1.50 this year. If you expect Summit's dividend to grow by 6.0% per year, what is its price per share if the firm's equity cost of capital is 11.0%? 7. Assume Gillette Corporation will pay an annual dividend of $0.65 one year from now. Analysts expect this dividend to grow at 12.0% per year thereafter until the 5th year. Thereafter, growth will level off at 2.0% per year. According to the dividend-discount model, what is the value of a share of Gillette stock if the firm's equity cost of capital is 8.0%? 8. CX Enterprises has the following expected dividends: $1.00 in one year, $1.15 in two years, and $1.25 in three years. After that, its dividends are expected to grow at 4% per year forever (so that year 4's dividend will be 4% more than $1.25 and so on). If CX's equity cost of capital is 12%, what is the current price of its stock? 9. Shatin Intl. has 10 million shares, an equity cost of capital of 13% and is expected to pay a total dividend of $20 million each year forever. It announces that it will increase its payout to shareholders. Instead of increasing its dividend, it will keep it constant and will start repurchasing $10 million of stock each year as well. What is your estimate of Shatin's stock price after this announcement? 10. Tolo Co. plans the following repurchases: $9.9 million in one year, nothing in two years, and $19.6 million in three years. After that, it will stop repurchasing and will issue dividends totaling $25.5 million in four years. The total paid in dividends is expected to increase by 2.8% per year thereafter. If Tolo has 1.8 million shares outstanding and an equity cost of capital of 10.7%, what is its price per share today