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Problem 7-1 DPS Calculation Thress Industries just paid a dividend of $2.50 a share (i.e., Do = $2.50). The dividend is expected to grow 3%

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Problem 7-1 DPS Calculation Thress Industries just paid a dividend of $2.50 a share (i.e., Do = $2.50). The dividend is expected to grow 3% a year for the next 3 years and then 11% a year thereafter. What is the expected dividend per share for each of the next 5 years? Round your answers to the nearest cent. a.Dl=$ b.D2=$ c D3=$ d D4=$ Problem 7-3 Constant Growth Valuation Woidtke Manufacturing's stock currently sells for $16 a share. The stockjust paid a dividend of $3.25 a share (i.e., D0 = $3.25), and the dividend is expected to grow forever at a constant rate of 7% a year. What stock price is expected 1 year from now? Round your answer to the nearest cent. $ What is the estimated required rate of return on Woidtke's stock? Round the answer to three decimal places. "In Problem 7-9 Constant Growth Valuation Crisp Cookware's common stock is expected to pay a dividend of $2 a share at the end of this year (D1 = $2.00); its beta is 0.85; the risk-free rate is 5.3%; and the market risk premium is 5%. The dividend is expected to grow at some constant rate Q, and the stock currently sells for $34 a share. Assuming the market is in equilibrium, what does the market believe will be the stock's price at the end of 3 years (i.e., what is P3 )? Do not round intermediate steps. Round your answer to the nearest cent. :1; 36.07 0 Problem 7-12 Nonconstant Growth Stock Valuation Assume that the average rm in your company's industry is expected to grow at a constant rate of 6% and that its dividend yield is 8%. Your company is about as risky as the average rm in the industry, but it has just successfully completed some R&D work that leads you to expect that its earnings and dividends will grow at a rate of 50% [D1 = Do(1 + g) = Do(1.50)] this year and 25% the following year, after which growth should return to the 6% industry average. If the last dividend paid (Do) was $1.5' what is the value per share of your rm's stock? Round your answer to the nearest cent. Do not round your intermediate computations. $ 101.43 0

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