Manings Review View Palatino Linoty... - 10 A- A A E.E.: 39 ABCcDdEe Aabe de B I U .abe X2 X? A AaBbCcD Normal No Spacing Heading 1 12%. Compute the value of this stock if dividends are expected to continue growing indefinitely at the company's internal growth. 6. Beaver Corporation stock is currently selling for $58.00. It is expected to pay a dividend of $5.00 at the end of the year. Dividends are expected to grow at a constant rate of 7.5% indefinitely. Compute the required rate of return on Beaver Corporation stock. 7. If you expect NoDiv Corporation to sell for $75 per share in three years while paying no dividends along the way, and if your required rate of return is 16% per year, how much is the stock worth today? 8. South Stage, Inc. preferred stock pays an annual dividend of $2.75 per share. If the stock is currently selling for $27.50 per share, what is the expected rate of return on this stock? 9. You purchased one share of Sophia Enterprises common stock for $30 today. If the stock pays a dividend of $6.50 in one year, and sells for $32.50 at that time, what will the dividend yield, growth rate, and total rate of return be for the year? 10. West stage has just paid a dividend of $3 per share, the growth rate will be %10 for the next 2 years, but after the dividends will grow at a constant rate of %5 forever. If the required rate of return is % 15 what should be the price of West Stage shares? P