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Layout References Mailings Review View em Help ew Ro - 12 A A A E. 21 U ak X, X Amy. A. EEEE... AaBbcc AaBbCd AaBBC AaBbcc 1 Normal T No Spac.. Heading 1 Heading 2 Font Paragraph 1. Calculate the fair value of common stock based on the following information: 7.5 pts Expected annual dividend = $1.50 Expected growth rate in carnings = 2.5% Required return on investment = 8.5% 7.5 pts 2. Calculate the price earnings (PE) ratio given the following data. Expected dividend per share is $1.67 Expected earnings per share is $4.75. and the growth in camnings is 2.5%, and the required return is 8.5%. 7.5 pts 3. a) If the payout ratio is 35%, growth in EPS is 2.5% and your required return is 8.5%, calculate the price earnings ratio. b) If earnings per share rises by $0.50 what would be the rise in stock price. 7.5 points 4. a) Calculate the implied return when the expected forthcoming annual dividend per share is $1.65 with a growth in EPS) of 2.5% and a current price of $35