1. Goode Inc.'s stock has a required rate of return of 11.50%, and it sells for $29.00 per share. Goode's dividend is expected to grow at a constant rate of 7.00%. What was the last dividend, D₀?

a. $1.22

b. $1.90

c. $1.31

d. $3.12

e. $1.40

2. Based on the corporate valuation model, Morgan Inc.'s total corporate value is $325 million. The balance sheet shows $150 million of notes payable, $50 million of long-term debt, $70 million of preferred stock, and $100 million of common equity. The company has 10 million shares of stock outstanding. What is the best estimate of the stock's price per share?

a. $12.50

b. $5.50

c. $7.50

d. $10.50

e. $22.50

3. Huang Company's last dividend was $2.85. The dividend growth rate is expected to be constant at 50.0% for 3 years, after which dividends are expected to grow at a rate of 6% forever. If the firm's required return (r_s) is 10%, what is its current stock price? Do not round intermediate calculations.

a. $214.88

b. $210.77

c. $228.71

d. $190.51

e. $207.92