Th e aigEquipment Manufacturing Co. has not kept pace with the times ad soy s its sales and market share decline. Based on this trend, the firm recently announced that s ne annual dividend will be $.55 a share and that all future dividerds will be decreased by 1. percent annually. You require a 9 percent rate of return on this stock What is one share of this stock worth to you today? a. $5.16 b. $5.24 C. d, e. $7.33 $5.32 $7.09 6. New Gadgets is growing at a very fast pace. As a result, the company expects to pay annual dividends of $0.55, 0.80, and $1.10 per share over the next three years, the dividend is projected paid was $0.40 a share. What is the current value of this stock if the required return is 16 respectively. After that, dividend the firm to increase by 5 percent r annually. The last annual percent? a. $8.50 b. $9.67 C. d $12.23 $10.46 e $12.49 7. The common stock of The Garden of Eden is selling for $42 a share. The company pays a constant annual dividend and has a total return of 5.8 percent. What is the amount of the dividend a. 1.02 b. 2.04 c. d. $ 3.70 e $6.81 $ 2.44 Donuts Delite just paid an annual dividend of $1.10 a share. The firm expects to increase this dividend by 8 percent per year for 3 years and then decrease the dividend growth to 2 percent annually thereafter. Which one of the following is the correct computation of the dividend for year 7? 8. a. ($1.10) (1.08 x 3) (1.02 x 4) b. ($1.10) (1.08 x 3) (1.02 x 3)