Constant-Growth Dividends, economics homework help

Description

Hello,Please assist with the below and complete in the attached xls. Thanks!

1. 
Constant-Growth Dividends: Problems
1, 2, 3, 4, and 6 on page 265

2. 
Zero-Growth Dividends: Problem 7 on
page 265 (an annuity) and Problem 8 on page 266 (a perpetuity)

3. 
Two-Stage Dividend Growth: Problem
25 on page 267

1. 
Stock Values [LO1] The Jackson–Timberlake Wardrobe Co. just paid
a dividend of $1.95 per share on its stock. The dividends are expected to grow
at a constant rate of 4 percent per year indefinitely. If investors require a
return of 10.5 percent on The Jackson–Timberlake Wardrobe Co. stock, what is
the current price? What will the price be in three years? In 15 years?

2. 
Stock Values [LO1] The next dividend payment by Halestorm, Inc.,
will be $2.04 per share. The dividends are anticipated to maintain a growth rate
of 4.5 percent forever. If the stock currently sells for $37 per share, what is
the required return?

3. 
Stock Values [LO1] For the company in the previous problem, what
is the dividend yield? What is the expected capital gains yield?

4. 
Stock
Values
LO1> Caan Corporation
will pay a $3.56 per share dividend next year. The company pledges to increase
its dividend by 3.75 percent per year indefinitely. If you require a return of
11 percent on your investment, how much will you pay for the company’s stock
today?

6.Stock Valuation LO1>
Suppose you know that a company’s stock currently sells for $63 per share and
the required return on the stock is 10.5 percent. You also know that the total
return on the stock is evenly divided between a capital gains yield and a
dividend yield. If it’s the company’s policy to always maintain a constant
growth rate in its dividends, what is the current dividend per share?

7.Stock Valuation [LO1] Estes Park Corp. pays
a constant $7.80 dividend on its stock. The company will maintain this dividend
for the next 13 years and will then cease paying dividends forever. If the
required return on this stock is 11.2 percent, what is the current share price?

8.Valuing Preferred Stock [LO1]
Moraine, Inc., has an issue of preferred stock outstanding that pays a $3.50
dividend every year in perpetuity. If this issue currently sells for $85 per
share, what is the required return?

25.Two-Stage Dividend Growth
Model
[LO1] Navel County Choppers, Inc., is experiencing rapid
growth. The company expects dividends to grow at 16 percent per year for the
next 11 years before leveling off at 4 percent into perpetuity. The required
return on the company’s stock is 10 percent. If the dividend per share just
paid was $1.94, what is the stock price?

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