can you help me with 7-7?

of the stock if investors require an 8 percent return? 7-6 Your broker offers to sell you shares of Wingler & Company common stock, which paid a dividend of $2 yesterday. You expect the dividend to grow at a rate of 5 percent per year into perpetuity. If the appropriate rate of return for the stock is 12 percent what is the market value of Wingler's stock? Alpine Ski Resort has grown at a constant rate, which equals 4 percent, for as long as it has been in busi- ness. This growth rate is expected to continue long into the future. A couple of days ago, Alpine paid common stockholders a dividend equal to $3 per share. If investors require a 10 percent rate of return to purchase Alpine's common stock, what is the mar- ket value of its common stock? 7-7 CHAPTER 7: Stocks (Equity)-Characteristics and Valuation 137