Solving in excel.....

Miller Hardware paid an annual dividend of $$1\mathrm{.}10$ per share recently. Today, the company

announced that future dividends will be increasing by $3\mathrm{.}5$ percent annually. If you require a $12$

percent rate of return, how much are you willing to pay to purchase one share of this stock

today?

The common stock of Textile Inc. pays a quarterly dividend of $$0\mathrm{.}40$ a share. The company has

promised to maintain a constant dividend even though economic times are tough. How much are

you willing to pay for one share of this stock if you want to earn a $10$ percent annual return?

Iron Manufacturers made two announcements concerning its common stock today. First, the

company announced that the next annual dividend will be $$2\mathrm{.}10$ a share. Secondly, all dividends

after that will increase by $2\mathrm{.}5$ percent annually. What is the maximum amount you should pay to

purchase a share of this stock today if you require a $10$ percent rate of return?

Islander Corporation's common stock will pay a dividend of $$3\mathrm{.}50$ one year from now. You plan to

buy the stock now and sell at the end of one year for $$70.$ At what price must you buy in order to

receive your required return of $18\%?$

XYZ common stock recently paid annual dividend in the amount of $$1\mathrm{.}75$ per share. The analysts

estimate of the firm's growth forecast over the next $5$ years is $15\%.$ You expect the firm to slow

down in the long run and estimate the long$-$term growth rate after $5$ years to be $8\%.$ If the

required rate of return on the stock is $10\%,$ what is your estimate of the stock price?

You observe a stock price of $$18\mathrm{.}75.$ You expect a dividend growth rate of $5\%,$ and the most

recent dividend was $$1\mathrm{.}50.$ What is the required return?