Quantitative Problem 1: Hubbard Industries fust paid a common dividend, Do, of $1.00. It expects to grow at a constant rate of 3% per year. If investors require a 12% return on equity, what is the current price of Hubbard's common stock? Do nat round intermediate calculations. Round your answer to the nearest cent. 5 per share Zero Growth Stocks: The constant growth model is sufficiently general to handie the case of a zero growth stock, where the dividend is expected to remain constant over time, In this situation, the equation is: P0=riD Note that this is the same equation developed in Chapter 5 to value a perpetulty, and it is the same equation used to value a perpetual preferred stock that entitles its owners to regular, fixed dlvidend paymests in perpetulty. The valuation equation is simply the current dividend divided by the required rate of return. Quantitative Problem 2: Carlysle Corporation has perpetual preferred stock outstanding that pays a constant annual dividend of $1.30 at the end of each year. If investors require an 6% return on the preferred stock, what is the price of the firm's perpetual preferred stock? Round your answer to the nearest cent. 5. per share Nonconstant Growth Stocks: For many companies, it is not appropriate to assume that dividends wal grow at a constant rate. Most firms go through life cycies where they experience different growth rates during different parts of the cycle. For valuing these firms, the generalized valuation and the constant growth equations are combined to arrive at the nonconstant growth valuation equation: P0=(t+t2)rD1+(1+r0)2D2++(1+t1)nDv+(1+r1)nD^r= Basically, this equation calculates the present value of devidends received during the nonconstant growth period and the present value of the stock's harizon value, which is the value at the horizon date of all dividends expected thereaftes