Teder Corporation stock currently sells for $90 per share. The market requires a 10 percent return on the firm's stock.

Required :

If the company maintains a constant 4 percent growth rate in dividends, what was the most recent dividend per share paid on the stock?

$5.40

$4.98

$12.64

$7.40

$5.19

Far Side Corporation is expected to pay the following dividends over the next four years: $11, $6, $5, and $2. Afterward, the company pledges to maintain a constant 3 percent growth rate in dividends forever.

Required:

If the required return on the stock is 13 percent, what is the current share price? (Do not round your intermediate calculations.)

$31.76

$31.03

$40.31

$32.71

$30.17

Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 13 years because the firm needs to plow back its earnings to fuel growth. The company will pay a $10 per share dividend in 14 years and will increase the dividend by 4 percent per year thereafter.

Required:

If the required return on this stock is 8 percent, what is the current share price? (Do not round your intermediate calculations.)

$94.68

$85.12

$87.33

$91.92

$96.52