Common stock value: Constant growth The common stock of Barr Labs Inc., trades for $112 per share. Investors expect the company to pay a(n) $1.26 dividend next year, and they expect that dividend to grow at a constant rate forever. If investors require a(n) 15.6% return on this stock, what is the dividend growth rate that they are anticipating? The anticipated dividend growth rate is %. (Round to two decimal places.) Common stock valueVariable growth Newman Manufacturing is considering a cash purchase of the stock of Grips Tool. During the year just completed, Grips earned $3.58 per share and paid cash dividends of $1.88 per share (Do = $1.88). Grips' earnings and dividends are expected to grow at 25% per year for the next 3 years, after which they are expected to grow 9% per year to infinity. What is the maximum price per share that Newman should pay for Grips if it has a required return of 14% on investments with risk characteristics similar to those of Grips? The maximum price per share that Newman should pay for Grips is $ (Round to the nearest cent.) Common stock valueVariable growth Lawrence Industries' most recent annual dividend was $2.28 per share (Do = $2.28), and the firm's required return is 16%. Find the market value of Lawrence's shares when dividends are expected to grow at 25% annually for 3 years, followed by a 6% constant annual growth rate in years 4 to infinity. The market value of Lawrence's shares is $ (Round to the nearest cent.) Management action and stock value REH Corporation's most recent dividend was $2.63 per share, its expected annual rate of dividend growth is 5%, and the required return is now 15%. A variety of proposals are being considered by management to redirect the firm's activities. Determine the impact on share price for each of the following proposed actions. a. Do nothing, which will leave the key financial variables unchanged. b. Invest in a new machine that will increase the dividend growth rate to 8% and lower the required return to 13%. c. Eliminate an unprofitable product line, which will increase the dividend growth rate to 7% and raise the required return to 16%. d. Merge with another firm, which will reduce the growth rate to 2% and raise the required return to 19%. e. Acquire a subsidiary operation from another manufacturer. The acquisition should increase the dividend growth rate to 9% and increase the required return to 16%. a. If the firm does nothing that will leave the key financial variables unchanged, the value of the firm will be $ . (Round to the nearest cent.)