Carver Corp. is expanding rapidly and currently reinvests all its earnings into the company. However, the company plans to pay its first ever dividend in the amount of $0.40 in three years. This dividend is expected to grow at 15% per year for two years but will then slow to a constant rate of 4% per year. If the required return on the stock is 9%, what is the value of the stock today? $4.18 (B) $5.73 (C) $6.92 (D) $8.13 $9.75 Butler Industries does not currently pay any dividends and has no plans to. A major hedge fund is interested in buying the company's stock. The hedge fund analysts have estimated the company's free cash flows for the next four years to be $15,000,000 in year 1,$20,000,000 in year 2,$27,000,000 in year 3 , and $32,000,000 in year 4 . After the fourth year, the free cash flows are projected to grow at a constant 4\%. The company's required return (WACC) is 9%, the market value of its debt totals $100,000,000 and it has 6,200,000 shares outstanding. The company has no preferred stock and no non-operating assets. What is the present value of the four cash flows projected by the hedge fund analyst? $74,113,628 (B) $85,160,638 $99,048,575 (D) $113,068,895 (E) $163,404,139 Garcia Industries does not currently pay any dividends and has no plans to. Another company is interested in buying the company's stock and has estimated the company's free cash flows for the next four years to be $21,000,000 in year 1, $17,500,000 in year 2, $18,400,000 in year 3 , and $22,600,000 in year 4 . After the fourth year, the free cash flows are projected to grow at a constant 4%. The company's required return (WACC) is 9%, the market value of its debt totals $91,000,000 and it has 4,500,000 shares outstanding. The company has no preferred stock and no non-operating assets. If the present value of the four projected cash flows is $64,214,041, what is the firm's estimated price per share today? Note that you will still need to calculate the total firm value before figuring out how much value belongs to shareholders and what the per share value is. $29.33 (B) $60.69 $68.05 (D) $87.55 (E) $92.81