CH7 1. Assume Coleco pays an annual dividend of $1.52 and has a share price of $37.94. It announces that its annual dividend will increase to $1.72. If its dividend yield stays the same, what should be its new share price? 2. Assume Coleco pays an annual dividend of $1.50 and has a share price of $37.50It announces that its annual dividend will increase to $1.75. If its dividend yield stays the same, what should be its new share price? 3. CX Enterprises has the following expected dividends: $1.14 in one year, $1.23 in two years, and $1.34 in three years. After that, its dividends are expected to grow at 4.3% per year forever (so that year 4's dividend will be 4.3% more than $1.34 and so on). If CX's equity cost of capital is 1 1 .8%, what is the current price of its stock? 4. CX Enterprises has the following expected dividends: $1.00 in one year, $1.15 in two years, and $1.25 in three years. After that, its dividends are expected to grow at 4% per year forever (so that year 4's dividend will be 4% more than $1.25 and so on). If CX's equity cost of capital is 12%, what is the current price of its stock? 5. Achi Corp. has preferred stock with an annual dividend of $2.94 If the required return on Achi's preferred stock is 8.3%, what is its price? (Hint: For a preferred stock, the dividend growth rate is zero.)