7. You are evaluating the purchase of T.P. Toys, Inc. Common stock that just paid a dividend of P1.80. You expect the dividend to grow at a rate of 12% indefinitely. You estimate that a required rate of return of 18% will be adequate compensation for this investment. Assuming that your analysis is correct, what is the most that you would be willing to pay for the common stock if you were to purchase it today?

8. MyBiibii Corp. Decided to undertake a large project. Consequently, there is a need for additonal funds. The finance manager plans to issue a 15% preferred stock to finance the project. The stock will have a par value of P50 per share. If investors required rate of return on this investment is currently at 18%, what should be the preferred stock market value?

9. You are considering the purchase of Ahlecs Company stock. You anticipate that the company will pay dividend of P2.25 per share next year and P2.50 per share the followiing year. You believe that you can sell the stock for P18.50 per share two years from now. If your required rate of return is 12.5%, what is the maximum price that would pay for a share?

Answer with solution pls