PROBLEM 8-8 COMMON STOCK VALUATION Crosby Corporation common stock paid $1.32 in dividends last year and is expected to grow indefinitely at an annual 7 percent rate. What is the value of the stock if you require an 11 percent return? DATA Growth rate 7.0% Dividend (D0) $1.32 Required rate 11.0% SOLUTION Value $12.77 Requirements: "1. Start Excel. Download and open the workbook named: Keown_Martin_Petty_Problem_8-8_Start. Important note: All calculations must be shown using cell references. Do NOT enter absolute numbers in the cells." 2. Calculate the value of the common stock by using the dividend valuation model in cell B12. (1 point) 3. Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed.