Quantitative Problem 1: Hubbard industries just paid a common dividend, D0, of \$1.70. ft expects to grow ot a constant rate of 4\% per yoor. if investors require a 12% return on equity, what is the current price of Hubberd's common stock? Do not round intermediate caiculations, Round your answer to the nearest cent. 15 per share Zero Growth Stocks: The comstant growth model is sufficientiy generai to handie the case of a zero growth stock, where the dividend is expected to remain constant over time. In this situotion, the equation is: Pd=riD Note that this is the same equation coveloped in Chopter 5 to vatue o perpetuity, and it is the same equation used to value a perpetual preterred stock that entities its owners to regular, fixed dividend payments in perpetuity. The valuation equation is simply the current dividend divided by the required rate of return. Quantitative Problem 2: Coriysle corporation hos perpetual preterred stock outstanding that poys a constent annuai dividend of s1. 80 at the en of each yeor. If inkestors require an 9% retum an the preferred stock, what is the price or the firm's perpetuat preferred stock? Found your answer to the nearest cent. per share Nonconstant Growth Stocks: For many compsnies, it is not appropnate to assume that dividenas wil grow at a constant rate. Most firms-go through ife cycles where they expetience ditterent groweh rates during different parts of the chcle. for valung these firms, the generalited valuation and the constant growth equations are combined to arive at the nonconstant growh valuation equasion: Nonconstant Growth Stociks: For many companies, it is not appropriate to assume that dividends will grow at a constant rate. Most firms go through life cycles where they experience different growth rates during different parts of the cycie. For valuing these firms, the generalized valuation and the constant growth equotions are combined to arrive at the nonconstant growth valuation equation: P^0=(1+r2)D1+(1+r2)3D2++(1+ri)3Ds+(1+r2)3P^s Basicolly, this equation calculates the present volue of dividends received during the nonconstant growth period and the present value of the stock's horizon value, which is the value ot the horizon date of all dividends expected thereafter. Quantitative Problem 31. Assume today is December 31, 2019. Imagine Works Inc. just paid a dividend of s1.10 per share at the end of 2019. The dividend is expected to grow at 12% per yeor for 3 years, after which tirne it is expected to grow at a constant rate of 6% annually. The company's cost of equity (rs) is 10\%6. Using the dividend growth model (ailowing for nonconstant growth), what should be the price of the company's stock today (December 31, 2019)? Do not round intermediate-calculations. Round yout:answer to the nearest cent. 5 persnare