If Martin Corporation is expected to pay a $2.00 dividend and these dividends are expected to grow at 3% per year. Additionally, Martins stock is trading at $50 in the market. Using this information, what is the implied required rate of return?

Marsha Corporation is expected to pay a $3.08 dividend in the coming year. Based on past experience Marshas management is expected to increase this dividend by 4% per year forever into the future. You look at the type of industry Marsha is in and determine that an 8% return is reasonable. Using this information, at what price should Marshas stock be trading in the market?

Using the data in the previous problem now assume that the Federal Reserve has raised interest rates and it is now reasonable to expect an 11% return. What is the most you are willing to pay for Marshas stock under these new conditions.

E Corporation has preferred stock outstanding that pays a $1.12 dividend. This is typical preferred stock in that the dividend is not expected to change for the life of the stock. Based on the risk of E Corporation, you think it is reasonable to expect a return of 9 percent. What is the value of this preferred stock?

F Corporation has a policy to grow the companys cash flows and consequently the dividend by 5 percent each year. In addition, F Corp is in an industry where risk is relatively low. Because of this low risk, a 11 percent return is reasonable as a required return. Assuming that F Corp will live up to these projection forever and expects to pay a $1.74 dividend per share at the end of the coming year, what is a ballpark estimate of the value of this common stock?

Melanie Corporation is expected to pay a $2.00 dividend in the coming year. Based on past experience Melanies management is expected to decrease this dividend by 3% per year forever into the future. You look at the stability of industry Melanie is operating in and determine that a 6% return is reasonable. Using this information, at what price should Melanies stock be trading in the market?