(A) The Merriweather Co. just announced that it will pay a dividend next year of $1.60. The company will then increase its dividend by 10 percent per year for two years after which it will maintain a constant 2 percent dividend growth rate. What is one share worth today at a required rate of return of 14 percent?

(B) The Dance Studio is currently an all-equity firm that has 22,000 shares of stock outstanding with a market price of $27 a share. The current cost of equity is 12 percent and the tax rate is 35 percent. The firm is considering adding $225,000 of debt with a coupon rate of 6.25 percent to its capital structure. The debt will sell at par. What will be the levered value of the equity?

(C) New World has a beginning cash balance of $536 on February 1st. The firm has projected sales of $660 in January, $810 in February and $890 in March. The cost of goods sold is equal to 70 percent of sales. Goods are purchased one month prior to the month of sale. Theaccounts payable period is 30 days and the accounts receivable period is 15 days. The firm has monthly cash expenses of $225. What is the projected ending cash balance at the end of February? Assume 30-day months