Document - Word gabriela guccaro Tell me lodleela . Paste es on E File Home Insert Design Layout References Mailings Review View Help Share Calibri (Body -111 B T U = 2 x x Styles Editing A.A.A. KA Clioboard fort 10 Paragraph 1 2 Lecture Exercise on Stock Valuation: 1. The lackson Timberlake Wardrobe Co. just paid a dividend of $1.45 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year indefinitely. If investors require a return of 11 percent on The Jackson Timberlake Wardrobe Co, stock, what is the current price? What will the price be in three years? In 15 years? 6. Storico Co. just paid a dividend of $2.25 per share. The company will increase its dividend by 20 percent next year and will then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent dividend growth, after which the company will keep a constant growth rate forever. If the required return on Storico stock is 12 percent, what will share of stock sell for today? 7. Shares of Hot Donuts common stock are currently selling for $32.35. The last annual dividend paid was $1.35 per share and the market rate of return is 10.7 percent. At whatrate is the dividend growing? 8. Winter Time Adventures is going to pay an annual dividend of $2.86 a share on its common stock next year. This year, the company paid a dividend of $2.75 a share. The company adheres to a constant rate of growth dividend policy. What will one shore of this common stock be worth five years from now if the applicable discount rate is 11.7 percent? Thish