Q1 part A

Part B

Part C

Part D

Part E

Weston Corporation just paid a dividend of $3.25 a share (i.e., D0=$3.25 ). The dividend is expected to grow 7% a year for the next 3 years and then at 3% a year thereafter. What is the expected dividend per share for each of the next 5 years? Do not round intermediate calculations. Round your answers to the nearest cent. D1=$D2=$D3=$D4=$D5=$ Holtzman Clothiers's stock currently sells for $20.00 a share. It just paid a dividend of $2.75 a share (i.e., D0=$2.75 ). The dividend is expected to grow at a constant rate of 10% a year. What stock price is expected 1 year from now? Round your answer to the nearest cent. $ What is the required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. % Earley Corporation issued perpetual preferred stock with an 11% annual dividend. The stock currently yields 7%, and its par value is $100. Round your answers to the nearest cent. a. What is the stock's value? $ b. Suppose interest rates rise and pull the preferred stock's yield up to 11%. What is its new market value? $ You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $2.75 a share at the end of the year (D1=$2.75) and has a beta of 0.9 . The risk-free rate is 2.7%, and the market risk premium is 4%. Justus currently sells for $44.00 a share, and its dividend is expected to grow at some constant rate, g. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years? (That is, what is P3 ?) Do not round intermediate calculations. Round your answer to the nearest cent. Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Computech to begin paying dividends, beginning with a dividend of $1.25 coming 3 years from today. The dividend should grow rapidly - at a rate of 41% per year - during Years 4 and 5 , but after Year 5, growth should be a constant 4% per year. If the required return on Computech is 13%, what is the value of the stock today? Do not round intermediate calculations. Round your answer to the nearest cent