STAR Company's management estimates to distribute $ 8 of dividend forever. If the required rate on the stock of the company is 16 %, how much do you pay for the stock today? 2-) GOOFY Co. has paid out dividend of $ 2 recently. The company expects to have 3 % growth rate in dividends forever. If the required rate of return on the company's stock is 11%, what is the company's stock price per share? 3-) GRANT Inc.'s stocks have a cost of 12 %. The owner of the company expects to give dividend of $ 5.75 per share in the coming year and a growth rate of 5 % in the future. What is the company's stock price in the market now? 4-) Mr. John, the finance manager of MARS Co. expects to have net profit after tax of $ 1,500,000 in the next year. The dividend payout ratio of the firm is 35 % and the firm has 100,000 shares outstanding. Mr. John predicts that the company will have a growth rate of 5.5 % in the future. If the the common stock of the company sells for $30, what is the rate of return on the stock? 5-) A stock is trading at $ 25 now. The stock is expected to have a year-end dividend of $ 2 per share which is expected to grow at a constant rate of g throughout time. If the stock's required rate of return is 14 %, what will be the constant growth rate? 6-) EDDIE Company currently pays a dividend of $5 per share. It is estimated that the company's dividend will grow at a rate of 20 % per year for the next two years, then the dividend will grow at a constant rate of 7% thereafter. The company's stock has a beta equal to 1.2, the risk-free rate is 7.5 %, and the market risk premium is 4 %. What would you estimate the stock's current price? 7-) EWALD Corporation is experiencing a period of rapid growth. Dividends are expected to grow at a rate of 15 % during the next 2 years, at 13% in the third year, and at a constant rate of of 6% thereafter. Ewald's last dividend was $ 1.15, and the required rate of return on the stock is 12 %. a-) Calculate the value of the stock today. b-) Calculate P and P. c-) Calculate the dividend yield and capital gains yield for Year 1. 8-) What is the price of a common stock that last paid a dividend of $ 0.30 under the following conditions if your required rate of return is 10%? a-) There is no expected growth in dividends. b-) Dividends are expected to grow at a constant rate of 6% per year indefinitely. c-) Dividends are expected to grow at a rate of 12% for three years and then immediately drop to a constant growth rate of 6% indefinitely. 9-) You want to buy a share of ROMAN Co. stock. You expect it to pay dividends of $ 1.07, $ 1.1449, and $ 1.2250 in Years 1,2 and 3 respectively, and you expect to sell it at a price of $ 26.22 at the end of Year 3. If you want 15 % return on this stock investment; a-) Calculate the growth rate in dividends. b-) Calculate the current price of a share. c-) Calculate the expected dividend yield. 10-) UPTON Company's stock is expected to distribute a dividend of $ 2.25 during the coming year. The growth rate on dividends is forecasted to be 3 % indefinitely. The bondholders of UPTON Co. requires 11 % return on their investments. If the stockholders put 4% risk premium on their investments at what price should UPTON's stock sell today?