Percy Grainger & Company currently earns $3.00 per share and the company plans to pay 40% of its after-tax earnings as dividends, currently at $1.20 per share in dividends.  It is expected to have a constant growth rate of 7% per year.  If the risk free rate of return is 6%, the market risk premium is 8%, and the beta for this company is 1.0, what is the stock price?

Your required rate of return is 15%.  Z Corp. is currently paying a dividend of $2.55.  If the expected constant growth rate is 8%. What is the maximum you should pay for this stock?

The firm just paid an annual dividend of $0.8 per share and plans to increase that amount by 25% next year. After that, the firm expects the dividend will grow by 3% annually. What is the expected value of this stock next year if the required return is 13 percent? 9.9 O 10.3 10.2

Victoria Company's beta is exactly 1.2, and the market risk premium is 9%, with a risk-free rate of 6%. The company's most recent dividend was $9 per share, and the dividend is expected to grow at 12% for the next three years and then grow at 5% per year indefinitely. 1. What would be Victoria's shares' intrinsic value per share? 2. What would be the dividend yield? 3. If all the expectations stay the same as stated, what would the share price be a year from now? What would be your capital gain if you owned a share for the year? Show that this gain is consistent with the expected dividend yield calculated above.