A stock is trading at $60 per share. The stock is expected to have a year-end dividend of $4 per share (D1= $4), and it is expected to grow at some constant rate g throughout time. The stock's required rate of return is 16% (assume the market is in equilibrium with the required return equal to the expected return). What is your forecast of g? Round the answer to three decimal places.

a. You buy a share of The Ludwig Corporation stock for $22.00. You expect it to pay dividends of $1.02, $1.17, and $1.3421 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $30.51 at the end of 3 years. Calculate the growth rate in dividends. Round your answer to two decimal places. % b. Calculate the expected dividend yield. Round your answer to two decimal places. % c. a. b. Assuming that the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to obtain the expected total rate of return. What is this stock's expected total rate of return (assume the market is in equilibrium with the required return equal to the expected return)? Round your answer to two decimal places. Several years ago, Rolen Riders issued preferred stock with a stated annual dividend of 11% of its $100 par value. Preferred stock of this type currently yields 8%. Assume dividends are paid annually. What is the estimated value of Rolen's preferred stock? Round your answer to the nearest cent. $ Suppose interest rate levels have risen to the point where the preferred stock now yields 14%. What would be the new estimated value of Rolen's preferred stock? Round your answer to the nearest cent. $ Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain all of its earnings. However, investors expect Simpkins to begin paying dividends, with the first dividend of $0.75 coming 3 years from today. The dividend should grow rapidly - at a rate of 75% per year - during Years 4 and 5. After Year 5, the company should grow at a constant rate of 6% per year. If the required return on the stock is 16%, what is the value of the stock today (assume the market is in equilibrium with the required return equal to the expected return)? Round your answer to the nearest cent. Do not round your intermediate computations. Crisp Cookware's common stock is expected to pay a dividend of $1.5 a share at the end of this year (D1 = $1.50); its beta is 1.05; the risk-free rate is 4.5%; and the market risk premium is 5%. The dividend is expected to grow at some constant rate g, and the stock currently sells for $47 a share. Assuming the market is in equilibrium, what does the market believe will be the stock's price at the end of 3 years (i.e., what is )? Do not round intermediate steps. Round your answer to the nearest cent. A stock is trading at $60 per share. The stock is expected to have a year-end dividend of $4 per share (D1 = $4), and it is expected to grow at some constant rate g throughout time. The stock's required rate of return is 16% (assume the market is in equilibrium with the required return equal to the expected return). What is your forecast of g? Round the answer to three decimal places