The Robert Phillips Co. currently pays no dividend. The company is anticipating

dividends of $0, $0, $.10, $.20, and $.30 over the next 5 years, respectively. After that,

the company anticipates increasing the dividend by 4% annually. Assuming the

appropriate discount rate is 7.5%, what is the value of this stock today?

Strico Co. just paid a dividend of $3.50 per share. The company will increase its

dividend by 20 percent next year and will then reduce its dividend growth rate by 5

percent per year until it reaches the industry average of 5 percent dividend growth, after

which the firm will keep a constant growth rate forever. If the required rate of return on

Sterico stock is 13 percent, What will a share of stock sell for today?

Bill Bailey and Sons pays no dividend at the present time. The company plans to start

paying an annual dividend in the amount of $.30 a share for two years commencing two

years from today. After that time, the company plans on paying a constant $1 a share

dividend indefinitely. Given a required return of 14%, what is the value of this

stock? $5.25