eBook Return on Common Stock You buy a share of The Ludwig Corporation stock for $21.30. You expect it to pay dividends of $1.02, $1.0904, and $1.1656 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $26.02 at the end of 3 years. a. Calculate the growth rate in dividends. Round your answer to two decimal places. % b. Calculate the expected dividend yield. Round your answer to two decimal places. c. Assuming that the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to obtain the expected total rate of return. What is this stock's expected total rate of return (assume market is in equilibrium with the required rate of return equal to the expected return)? Do not round intermediate calculations. Round your answer to two decimal places. % Check My Work B eBook H Problem Walk-Through Nonconstant Dividend Growth Valuation Assume that the average firm in C&J Corporation's industry is expected to grow at a constant rate of 4% and that its dividend yield is 8%. C&J is about as risky as the average firm in the industry and just paid a dividend (Do) of $1.75. Analysts expect that the growth rate of dividends will be 50% during the first year (90,1 -50%) and 30% during the second year (01.2-30%). After Year 2, dividend growth will be constant at 4%. What is the required rate of return on C&J's stock? What is the estimated intrinsic price per share? Do not round intermediate calculations. Round the monetary value to the nearest cent and percentage value to the nearest whole number. Po: $ % eBook Constant Dividend Growth Valuation Problem Walk-Through Crisp Cookware's common stock is expected to pay a dividend of $1.75 a share at the end of this year (D - $1.75); its beta is 0.7. The risk-free rate is 5.1% and the market risk premium is 6%. The dividend is expected to grow at some constant rate, gu, and the stock currently sells for $80 a share. Assuming the market is in equilibrium, what does the market believe will be the stock's price at the end of 3 years (i.e., what is Ps)? Do not round intermediate calculations. Round your answer to the nearest cent.