Dexter Homes common stock paid a dividend of $2.50 recently. Given that Dexter Homes is a stable company; its dividends are expected to grow at the rate of 7% each year. If you require a rate of return of 15%, what price would you be willing to pay for its common stock? Refer to the data in the previous problem. For the common stock issued by Dexter Homes, if an investor can buy the stock for $29 per share, what is the investor's rate of return on this investment? Build-Your-Own, a new company in the construction Industry, has some common stock outstanding. The company, being new. is not expected to pay any dividends for the next two years. In years 3 and 4, it is expected to pay dividends of $6 and $8. Respectively. In year 5. Its dividends are expected to come down to $2. From that time, it is expected to grow at the rate of 5% forever. If you require a rate of return of 16%. What price would you be willing to pay for the stock? Mayflower Industries, which has come up with an innovative idea in manufacturing metal sheets, expects its dividends to grow at 8% each year for the four years. After the fourth year, it expects its dividends to grow at a more normal rate of 4% each year, forever. If Mayflower Industries is expected to pay a dividend of $2.00 per share next year, and your required rate of return is 10%, what price would you be willing to pay for its stock today? Jensen Technology has not paid any dividends to its stockholders. It is expected to pay its first dividend of $5.00 in 4 years, and will continue paying dividends that grow at the rate of 5% each year. If an investor requires a return of 9% on Jensen stock, what price would the investor be willing to pay for Jensen stock