Actual 2015 2016 2017 2018 Free cash flow $606.82 $667.50 $70755 $750.00 (millions of dollars) diate Problems 8-17 Constant Growth Rate, g nd dividend of S4 per share (D,$4), and it is expected to grow at some constant rate g throughout time. The stock's required rate of return is 14% terme In 8-8 Costock is trading at $80 per share. The stock is expected to have a year- ume the market is in equilibrium with the required return equal to the (ass xpected return). What is your forecast of g? - Constant Growth Valuation Cookware's common stock is expected to pay a dividend of $3 a share end of this year (D, = $3.00); its beta is 0.8; the risk-free rate is 5.2%; and the market risk premium is 6%. The dividend is expected to grow at some constant rate g, and the stock currently sells for $40 a share. Assuming the market is in equilibriurn, what does the market believe will be the stock's t the end of 3 years (i.e., what is P)? price at t 8-10 Pre Vhat is the required rate of return on a preferred stock with a $50 par value, a stated annual dividend of 7% of par, and a current market price of (a)$30, (b) $40, (c) S50, and (d) $70 (assume the market is in equilibrium with the required return equal to the expected return)? 8-11 Declining Growth Stock Valuation Brushy Mountain Mining Company's coal reserves are being depleted, so its sales are falling. Also, environmental costs increase each year, so its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 4% per year. If Do-$6 and rs = 14%, what is the estimated value of Brushy Mountain's stock