Case 10: Stock Valuation 1. Ed Noel Corporation just paid its annual dividends of $1.80 per share. The required return for the common stock is 12%. Determine the value of the common stock it a. dividends are expected to grow at annual rate of 0% b. dividends are expected to grow at a constant rate of 5% c. dividends are expected to grow at a rate of 5% for the next 3 years and followed by a growth rate of 4% in the succeeding years. 2. An investor is currently evaluating the value of Ed Noel Corporation. Ed Noel corporation currently have an existing debt of $12,500,000. The company's free cash ow for the next tour years are as follows Year Free Cash Flow 1 $ 800,000 2 1,200,000 3 1,400,000 4 1,500,000 The company is expecting that the free cash flow will grow at 4% annually after the tourth year. Determine the following it the required return is 10% a. What is the value of the company? 13. What is the common stock value of the company? c. What is the value per share at the company it the company have 500,000 common shares outstanding