Question 1 - Present value of dividends Outback Yards Pty Ltd is a fast-growing company. The company excepts to grow at a rate of 22 per cent over the next 2 years and then slow down to a growth rate of 18 per cent for the following 3 years. If the last dividend paid by the company was $2.15, estimate the dividends for the next 5 years calculate the present value of these dividends if the required rate of return was 14 per cent. Question 3 - Zero growth Armour Supply Pty Ltd Has seen no growth for the past several years and expects the trend to continue. The company last paid a dividend of $3.67. If you require a rate of return of 18.5 per cent, what is the current share price? Question 6 - Constant growth Happy Optical Pty Ltd declared a dividend of $2.15 yesterday. The company is expected to grow at a steady rate of 5 per cent for the next several years. If shares such as these require a rate of return of 21 per cent, what should be the market value of this share? Question 8 - Constant growth Tarco Pty Ltd is expected to pay a dividend of $2.32 next year. The forecast for the share price a year from now is $41.50. If the required rate of return is 17.5 per cent, what is the current share price? Assume constant growth Question 10 - Preference share valuation Keystone Energy Pty Ltd has issued the perpetual preference shares with a par of $100 and an annual dividend of 5.5 per cent. If the required rate of return is 11.75 per cent, what is the share's current market price