The dividend-growth model may be used to value a stock:

Round your answers to the nearest cent.

1. What is the value of a stock if: D0 = $4.80 k = 10% g = 5%

$

2. What is the value of this stock if the dividend is increased to $5.90 and the other variables remain constant?

$

3. What is the value of this stock if the required return declines to 8 percent and the other variables remain constant?

$

4. What is the value of this stock if the growth rate declines to 3 percent and the other variables remain constant?

$

5. What is the value of this stock if the dividend is increased to $6.10, the growth rate declines to 3 percent, and the required return remains 10 percent?

$