Good Afternoon,

You did excellent work for me twice now, so I would like to ask for your help directly with my assignment. I have answered 5/10 questions on this, however, please check the answers for accuracy and on the ones that are not multiple choice, please show me the work on how to get to the answer so that I can show it. Work can be shown on paper or typed out as you did on my other documents. Let me know if you have any questions.

Thank You!

CH7 HW 1. The Whirlwind Co. just paid an annual dividend of $3 a share. The firm expects to pay dividends forever and to increase the dividend by 5 percent annually. What is the current value of this stock if the required return is 9 percent? 2. Intel just paid an annual dividend of $2 a share. Management estimates the dividend will increase by 10 percent a year for the next two years. After that, the dividend growth rate is estimated at 5 percent. The required rate of return is 12 percent. What is the value of this stock today? 3. The next dividend payment by Apple Inc. will be $2.70 per share. The dividends are anticipated to maintain a 6% growth rate, forever. If the stock currently sells for $50 per share, what is the required return? 4. Target Inc. has just paid a dividend of $4 per share and has announced that it will increase the dividend by $2 per share for each of the next four years, and then never pay another dividend. If you require an 8% return on the company's stock, how much will you pay for a share today? 5. ________ are promised a fixed periodic dividend that must be paid prior to paying any common stock dividends. A) Preferred stockholders B) Common stockholders C) Bondholders D) Creditors 6. Which of the following is typically a feature of common stock? A) Most common stocks are callable. B) Most common stocks are cumulative. C) Common stocks have a maturity value. D) Common stocks may or may not pay dividends. 7. The cost of preferred stock is ________. A) lower than the cost of long-term debt. B) higher than the cost of common stock. C) higher than the cost of long-term debt and lower than the cost of common stock. D) lower than the cost of convertible long-term debt and higher than the cost of common stock. 8. A firm has to pay a dividend of $1.20 per share till perpetuity, a zero growth rate of dividends, and a required return of 10 percent. The value of the firm's preferred stock is ________. 9. Emmy Lou, Inc. has an expected dividend next year of $5.60 per share, a growth rate of dividends of 10 percent, and a required return of 20 percent. The value of a share of Emmy Lou, Inc.'s common stock is ________. $56.00 10. You are planning to purchase the stock of Ted's Sheds Inc. and you expect it to pay a dividend of $3 in 1 year, $4.25 in 2 years, and $6.00 in 3 years. You expect to sell the stock for $100 in 3 years. If your required return for purchasing the stock is 12 percent, how much would you pay for the stock today? $81.52