LO 1 1. Stock Values. Gilmore, Inc., just paid a dividend of $2.35 per share on its stock. The dividends are expected to grow at a constant rate of 4.1 percent per year, indefinitely. If investors require a return of 10.4 percent on this stock, what is the current price? What will the price be in three years? In 15 years? LO 1 2. Stock Values. The next dividend payment by Dizzle, Inc., will be $2.48 per share. The dividends are anticipated to maintain a growth rate of 4.5 percent forever. If the stock currently sells for $39.85 per share, what is the required return? 230 PART 4 Valuing Stocks and Bonds LO 1 3. Stock Values. For the company in the previous problem, what is the dividend yield? What is the expected capital gains yield? Talla T.IT 25 5. Stock Valuation. Mitchell, Inc., is expected to maintain a constant 4.6 percent growth rate in its dividends, indefinitely. If the company has a dividend yield of 5.8 percent, what is the required return on the company's stock