Ray Inc. company is not expected to pay any dividends for three years while it attempts to restructure its business. They anticipate paying $1.20 in year four and thereafter growing at a rate of 6%. What should we pay for the stock if we demand a 15% rate of return?

Harris company paid a dividend of 1.60 today. It expects dividend payments to increase by 15% every year for the next three years before resuming a normal growth of 7%. What should you pay for this stock if you demand a 16% rate of return?

A perpetual preferred stock pays a dividend of $4.20 per face value of $100. What is the price of the preferred stock if investors demand a 14% rate of return.