Waller Co. (WAG) paid a $0.194 dividend per share in 2006, which grew to $0.440 in 2012. This growth is expected to continue.

What is the value of this stock at the beginning of 2013 when the required return is 15.0 percent? (Round the growth rate, g, to 4 decimal places. Round your final answer to 2 decimal places.)

Stock value

$

Consider a firm that had been priced using a 9.5 percent growth rate and an 11.5 percent required return. The firm recently paid a $1.75 dividend. The firm has just announced that because of a new joint venture, it will likely grow at a 10.0 percent rate.

How much should the stock price change (in dollars and percentage)? (Do not round intermediate calculations and round your final answers to 2 decimal places.)

Change in stock price	$
Change in stock percent	%

A fast-growing firm recently paid a dividend of $0.55 per share. The dividend is expected to increase at a 10 percent rate for the next three years. Afterwards, a more stable 5 percent growth rate can be assumed.

If a 6 percent discount rate is appropriate for this stock, what is its value today? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Stock value

$

A fast-growing firm recently paid a dividend of $0.50 per share. The dividend is expected to increase at a 30 percent rate for the next four years. Afterwards, a more stable 11 percent growth rate can be assumed.

If a 12.5 percent discount rate is appropriate for this stock, what is its value? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Stock value

$

Suppose that a firms recent earnings per share and dividend per share are $2.90 and $1.90, respectively. Both are expected to grow at 9 percent. However, the firms current P/E ratio of 28 seems high for this growth rate. The P/E ratio is expected to fall to 24 within five years.

Compute the dividends over the next five years. (Do not round intermediate calculations and round your final answers to 3 decimal places.)

Dividends	Years
First year	$
Second year	$
Third year	$
Fourth year	$
Fifth year	$

Compute the value of this stock in five years. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Stock price

$

Calculate the present value of these cash flows using an 11 percent discount rate. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Present value

$

Suppose that a firms recent earnings per share and dividend per share are $3.40 and $3.10, respectively. Both are expected to grow at 8 percent. However, the firms current P/E ratio of 32 seems high for this growth rate. The P/E ratio is expected to fall to 28 within five years.

Compute the dividends over the next five years. (Do not round intermediate calculations and round your final answers to 3 decimal places.)

Dividends	Years
First year	$
Second year	$
Third year	$
Fourth year	$
Fifth year	$

Compute the value of this stock price in five years. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Stock price

$

Calculate the present value of these cash flows using a 10 percent discount rate. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Present value

$