Spendex Corporation paid a dividend of $ 1.13 per share today. Dividends are expected to grow at 11.00% per year for the next 3 years, then at 8.00% per year in the following 2 years. After the 5th year, the growth in dividends is expected to remain constant at 6.00%. As an investor, you require a 10.00% rate of return on this equity investment. What is the maximum price you would be willing to pay for a share of Spendex?

Car Rental Service's stock price is expected to be $85 in one year immediately after paying a dividend of $3.87. If its equity cost of capital is 12%, what is the expected capital gain in dollars if you sell the stock one year from today immediately after receiving the dividend?

The stock of Carroll’s Bowling Equipment currently pays a dividend (D0) of $2. This dividend is expected to grow at an annual rate of 17 percent for the next 3 years. The dividend is expected to increase by $1 in Year 4 and to grow at a constant annual rate of 8 percent thereafter. If you require a 28 percent rate of return on an investment such as this, how much would you be willing to pay per share? Use Table II to answer the question. Do not round intermediate calculations. Round your answer to the nearest cent. $

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?