Dividend Growth Annual dividends of General Electric (GE) grew from $0.75 in 2001 to $1.12 in 2006. What was the annual growth rate?

Expected Return Paychex Inc. (PAYX) recently paid a $0.90 dividend. The dividend is expected to grow at a 6 percent rate. At a current stock price of $40.11, what is the return shareholders are expecting?

Dividend Initiation and Stock Value A firm does not pay a dividend. It is expected to pay its first dividend of $0.35 per share in three years. This dividend will grow at 6 percent indefinitely. Using an 11.5 percent discount rate, compute the value of this stock.

Variable Growth A fast growing firm recently paid a dividend of $0.25 per share. The dividend is expected to increase at a 15 percent rate for the next 4 years. Afterwards, a more stable 6 percent growth rate can be assumed. If a 15 percent discount rate is appropriate for this stock, what is its value?