Please show work.

1. (common stock valuation, constant growth) Youve discovered a company that is expected to pay $2.25 dividend at the end of this year. The dividend is expected to grow forever at a constant rate of 4% a year. The required rate of return for this stock is 8%. Given these conditions, what is the estimated market value per share of this stock?

2. (common stock valuation, non-constant growth) Youve discovered a company that is expected to pay $2.25 dividend at the end of this year. You estimate the companys dividends will grow 10% next year and then at a constant rate of 4% thereafter. The required rate of return for this stock is 8%. Given these conditions, what is the estimated market value per share of this stock?

3. (The PE model) Imagine you are estimating the market value of Wild West Oil Companys stock, which is not publicly traded. So you decide to use the PE model for your valuation. You observe the following PE Ratio comparisons for your project:

Company PE Ratio (from the Internet)

a. Exxon-Mobil 10

b. Chevron 11

c. ConocoPhillips 14

a. What is the implied appropriate PE for Wild West Oil Company?

b. Assuming Wild West Oil Companys EPS is = $3.10, what is your estimate for the market value of the companys stock?

4. (Preferred stock valuation) You have discovered a company which has issued preferred stock with a stated annual dividend of 6% of its par value of $100. The average yield on preferred stock of this type among other companies is 7%. Given these conditions, what is your estimate of the market value of this companys preferred stock?