---The stock of Cabbor, Incorporated is trading at $70.00 per share. The company just paid a dividend of $5.00 per share (that is, D0 = 5.00). The growth rate in dividends is projected to be 6 percent per year forever. What is Cabbors cost of equity capital (that is, compute the required rate of return on the stock)?

-Phillips, Inc. just paid a dividend of $3.25 per share on its common stock (that is, D0 = 3.25). Investors expect the dividend to grow at 50% in years 1 and 2, they expect the dividend to grow at 20% in year 3 and they expect that all future dividends (that is, dividends in years 4, 5, ..., infinity) to grow at a constant rate of 6% per year. If the cost of capital for Phillips, Inc. stock is 15%, what is the current price of the stock?

-IBIS Corporation has had dividends grow from $2.50 per share to $6.50 per share over the last 10 years (the $6.50 per share dividend was paid yesterday; that is, D0 = $6.50). This compounded annual growth rate in dividends is expected to continue into the future forever. If the current market price of IBISs stock is $45.00 per share, what rate of return do investors expect to receive from buying IBIS stock?

-A firm will pay a dividend of $0 one year from today and $5.00 two years from today (that is, D1 = $0 and D2 = 5.00). Thereafter, the dividend is expected to grow at a constant rate forever. The price of this stock today is $100 and the required rate of return on the stock is 10%. What is the expected constant growth rate of the dividend stream from year 2 to infinity?