part a

part b

part c

Constant Dividend Growth Rate, OL Muller's Investigative Services has stock is trading at $75 per share. The stock is expected to have a year-end dividend of $6 per share (D1 = $6), and it is expected to grow at some constant rates throughout time. The stock's required rate of return is 15% (assume the market is in equilibrium with the required return equal to the expected return), what is your forecast of OL? Do not round intermediate calculations, Round the answer to two decimal places. Assume that the average firm in CBJ Corporation's Industry is expected to grow at a constant rate of 6% and that its dividend yield is 5%. CJ is about as risky as the average firm in the Industry and just paid a dividend (Do) of $1.5. Analysts expect that the growth rate of dividends wil be 50% during the first year (90,1 50%) and 30% during the second year (1,2 - 30%). After Year 2, dividend growth will be constant at 6%. What is the required rate of return on co's stock? What is the estimated Intrinsic price per share? Do not round Intermediate calculations, Round the monetary value to the nearest cent and percentage value to the nearest whole number. rs: % Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain all of its earnings. However, investors expect Simpkins to begin paying dividends, with the first dividend of $1.25 coming 3 years from today. The dividend should grow rapidly - at a rate of 80% per year - during Years 4 and 5. After years, the company should grow at a constant rate of 5% per year. Ir the required return on the stock is 13%, what is the value of the stock today (assume the market is in equilibrium with the required return equal to the expected return)? Do not round intermediate calculations, Round your answer to the nearest cent