No Spacing Heading 1 Headg le 5- Biogenetics, Inc. plans to retain and reinvest all of their earnings for the next 30 years. Beginning in year 31, the firm will begin to pay a $25 per share dividend. The dividend will increase at a 5% rate annually thereafter. Given a required return of 13%, what should the stock sell for today? 6- When you bought a share of stock in killnum yesterday, analysts believed that the dividend next period would be $1.50 and that dividends would grow by 8%. Today Killnum Corp. announces that the dividend for the next year will be $2.00 per share rather than the originally expected $1.50 per share. From then on, it is expected that dividends will resume their historical constant growth rate of 5% per year. If your required rate of return is 12.5%, what will be your overnight capital gains yield on this stock? 5 7-CBC stock is expected to sell for $25 two years from now. Supernormal growth of 5% is expected for the next 2 years. The current dividend is $1.95 and the required return is 15%. what constant growth rate is expected beginning in year 3? 9 8- Among Homer Simpsons many experiences as an (failed) entrepreneur is the time that he started a firm to recycle us dividend growth rate will be 6% for each of the next two years, 12% in the third year, and then will remain steady at 10% thereafter. Given the risky nature of purifying grease, prospective investors require a 15% rate of return if they are to invest in the stock of this enterprise. How much is this stock worth today? Based on the above inform years? ed grease. The current dividend is on this stock is $0.90, and Homer expects that the ation, how much should you expect the stock to cost in three