Note that this is the same equation developed in Chapter 5 to value a perpetuity, and it is the same equation used to value a perpetual p that entitles its owners to regular, fixed dividend payments in perpetulty. The valuation equation is simply the current dividend divided b rate of return. Quantitative Problem 2: Carlysle Corporation has perpetual preferred stock outstanding that pays a constant annual dividend of $1.70 each year. If investors require an 10% return on the preferred stock, what is the price of the firm's perpetual preferred stock? Round you nearest cent. S per share Nonconstant Growth Stocks: For many companies, it is not appropriate to assume that dividends will grow at a constant rate. Most firms go through life cycles where different growth rates during different parts of the cycle for valuing these firms, the generalized valuation and the constant growth equa combined to arrive at the nonconstant growth valuation equation: Dj Di PM Po + + Basically, this equation calculates the present value of dividends received during the conconstant growth period and the present value of horizon value, which is the value at the horizon date of all dividends expected therefter Quantitative Problem 3: Assume today is December 31, 2019, Imagine Works Inc olid a dividend of $1.40 per share at the end c dow at a constant rate of 5.5% annually. The dividend is expected to grow at 12% per year for 3 years, after which time it should be the price of the company's sta of equity (rs) is 9.5%. Using the dividend growth model (allowing for nonm (December 31, 2019)? Do not round intermediate calculations. Round your per share 5 C