Quantitative Problem 1: Hubbard Industries just pald a common dividend, Do, of $1.20. It expects to grow at a constant rate of 3% per year. If investors require a 9% return on equity, what is the current price of Hubbard's common stock? Do not round intermediate calculations. Round your answer to the nearest cont. 3. per share. Zero Growth 5tocks: The constant growth model is sufficiently general to handle the case of a zero growth stock, where the dividend is expected to remain constant over time. In this situation, the equation is: P^0=1D 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 entities its ownen to regulac, fixed dividend povments in perpetuitylithe valuation equation is simply the current dividend divided by the required rate of return. Quantitative Problem 2t Carlysie Corporation has perpetual preferred stock outstanding that pays a constant annual dividend of $1.40 at the end of each year. If itwestors require an 7 whe return on the preferred stock, what is the price of the firm's perpetual preferred stock? Round your answer to the nearest cent. 3 per share Noncomstant Growth Stocks: For many companies, it is not appropriate to assume that dividends will grow at a constant rote. Most firms go through life cycles where they experience different growth rates during gifferent 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: Besitalily, this equation calcuitates the present value of dividends received during the nonconstant growth period and the present value of the stock's hocizon value, which is the value at the horixon date of all cividends expected thereafter. Quantitative Problem 3: Assume todoy is December 31, 2019. Imagine Works Inc. just paid a dividend of $1.20 per stare at the end of 2019. The dividend is expected to grow at 15% ser year for 3 years, after which time it is expected to grow at a constant rate of 6N annualif The company cost of equity ( c ) is 9,5%. Using the dividend growth model (eliloming for nanconstant growth), what should be the price of the company's stock today (December 31,2019) ? Do not round intermetiate calculations. Hound your answer to the nesrest cent. 5 per share