Problems Answers Appear in Appendix B Easy Problems 1-5 $1.50 a share for the 5- 10 Rates and t its ra very stoc 1 DPS Calculation Thress Industries just paid a dividend of = $1.50). The dividend is expected to grow 500 a yea and then 10% a year thereafter. What is the expected dividend. next each of the next 5 years? 5-2 Constant Growth Valuation Boehm Incorporated is expected to pc Thedivie expected to grow at a constant rate of % a year. The required rat on the stock, r , is 13%. What is the value per share of Boehm's stock of 5-3 Constant Growth Valuation Woidtke Manufacturing's stock curren $22 a share. The stock just paid a dividend of $ 1.20 a share (i.e., D 5-11 $1.20 the dividend is expected to grow forever at a constant rate of 10% av stock price is expected 1 year from now? What is the required rate of retur Woidtke's stock? 5-4 Preferred Stock Valuation Nick's Enchiladas Incorporated has preferred outstanding that pays a dividend of $5 at the end of each year. The prim sells for $50 a share. What is the stock's required rate of return? 5- 5-5 Nonconstant Growth Valuation A company currently pays a dividenl $2 per share (D, $2). It is estimated that the company's dividend will at a rate of 20% per year for the next 2 years, then at a constant rate of thereafter. The company's stock has a beta of 1.2, the risk-free rate is Is and the market riskpremiumis 4%. What is your estimate of the stocks rent price