Constant Growth Valuation Boehm Incorporated is expected to pay a $4.00 per share dividend at the end of this year (1.e.,D1=$4.00). The dividend is expected to grow at a constant rate of 3% a year. The required rate of return on the stock, rs, is 10%. What is the estimated value per share of Boehm's stock? Do not round intermediate calculations. Round your answer to the nearest cent. Constant Growth Valuation Woidtke Manufacturing's stock currently sells for $35 a share. The stock just paid a dividend of $2.20 a share (i.e., D0=$2.20 ), and the dividend is expected to grow forever at a constant rate of 3% a year. What stock price is expected 1 year from now? Do not round intermed late calculations. Round your answer to the nearest cent. $ What is the estimated required rate of return on Woidtke's stock? Do not round intermediate calculations. Round the answer to two decimal places. (Assume the market is in equilibrium with the required return equal to the expected return.) Preferred Stock Rate of Return Nick's Enchiladas Incorporated has preferred stock outstanding that pays a dividend of $3 at the end of each year. The preferred sells for $60 a share. What is the stock's required rate of return? (Assume the market is in equilibrium with the required return equal to the expected return.) Round the answer to two decimal places. % Nonconstant Growth Valuation A company currently pays a dividend of $3.8 per share ( D0=$3.8 ). It is estimated that the company's dividend will grow at a rate of 21% per year for the next 2 years, and then at a constant rate of 5% thereafter. The company's stock has a beta of 1.1, the risk-free rate is 8.5%, and the market risk premium is 4.5%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent. Declining Growth Stock Valuation Brushy Mountain Mining Company's coal reserves are being depleted, so its sales are falling. Also, environmental costs increase each year, so its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 3% per year. If D0=$6 and r5=15%, what is the estimated value of Brushy Mountain's stock? Do not round intermediate calculations. Round your answer to the nearest cent. $ Nonconstant Growth Stock Valuation Assume that the average firm in your company's industry is expected to grow at a constant rate of 5% and that its dividend yield is 8%. Your company is about as risky as the average firm in the industry and just paid a dividend (D0) of $2. You expect that the growth rate of dividends will be 50% during the first year (90,1= 50%) and 30% duripg the second year (91,2=30%). After Year 2 , dividend growth will be constant at 5%. What is the required rate of return on your company's stock? What is the estimated value per share of your firm's stock? Do not round intermediate calculations. Round the monetary value to the nearest cent and percentage value to the nearest whole number. rs:P0:$ Nonconstant Growth Stock Valuation Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain all of its earnings. However, investors expect Simpkins to begin paying dividends, with the first dividend of $1.00 coming 3 years from today. The dividend should grow rapidly - at a rate of 70% per year - during Years 4 and 5. After Year 5 , the company should grow at a constant rate of 7% per year. If the required return on the stock is 16%, what is the value of the stock today (assume the market is in equilibrium with the required return equal to the expected return)? Doinot round intermediate calculations. Round your answer to the nearest cent. 5