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(7-1) Thress Industries just paid a dividend of $1.50 a share (i.e, Do $1.50). The d lculation expected to grow 5% a year for the

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(7-1) Thress Industries just paid a dividend of $1.50 a share (i.e, Do $1.50). The d lculation expected to grow 5% a year for the next 3 years and then 10% a year thereafter EASY PROBLEMS 1 the expected dividend per share for each of the next 5 years? (7-2) Boehm Incorporated is expected to pay a $1.50 per share dividend at the end of this t Growth (ie, Di = $1.50) The dividend is expected to grow at a constant rate of 6% a year T equired rate of return on the stock, r , is 13%. What is the estimated value per share Boehm's stock? (7-3) Woidtke Manufacturing's stock currently sells for $22 a share. The stock just paid a Growth dividend of $1.20 a share (i.e., Do $1.20), and the dividend is expected to grow forever ation at a constant rate of 10% a year. What stock price is expected 1 year from now? what is the estimated required rate of return on Woidtke's stock? (Assume the market is in equilibrium with the required return equal to the expected return.) Nick's Enchiladas Incorporated has preferred stock outstanding that pays a dividend of s5 at the end of each year. The preferred sells for $50 a share. What is the stock's required rate of return (assume the market is in equilibrium with the required return equal to the expected return)? (7-4) d Stock luation 7-5) A company currently pays a dividend of $2 per share (Do $2). It is estimated that the rowth uation company's dividend will grow at a rate of 20% per year for the next 2 years, and then a constant rate of 7% thereafter. The company's stock has a beta of 1.2, the risk-free rate is 7.5%, and the market risk premium is 4%, what is your estimate of the stock's current price 7-6) EMC Corporation has never paid a dividend. Its current free cash flow of $400,000s tions: expected to grow at a constant rate of 5%. The weighted average cost of capital is rowth wACC = 12%. Calculate EMC's estimated value of operations. Current and projected free cash flows for Radell Global Operations are shown here. Gro is expected to be constant after 2018, and the weighted average cost of capital is 11%. (7-7) lue or Flows the horizon (continuing) value at 2019 if growth from 2018 remains constant

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