The Medical Equipment Company paid $2.25 common stock dividend last year. The company expects a dividend growth of 10% in year 1 and 2, no growth in dividends in year 3 as the company has a large capital expenditure project to take and hence need to retain profit in that year. Then a 15% growth is expected in year 4. The company’s policy is to allow its dividend to grow indefinitely at 5 percent per year starting year 5. What is the value of the stock if the shareholders required rate of return is 8 percent?

Barton Industries expects next year's annual dividend, D1, to be $2.30 and it expects dividends to grow at a constant rate g = 4.9%. The firm's current common stock price, P0, is $25.00. If it needs to issue new common stock, the firm will encounter a 4.5% flotation cost, F. What is the flotation cost adjustment that must be added to its cost of retained earnings? Do not round intermediate calculations. Round your answer to two decimal places.   _____% What is the cost of new common equity considering the estimate made from the three estimation methodologies? Do not round intermediate calculations. Round your answer to two decimal places.   _____%

Staton-Smith Software is a new start-up company and will not pay dividends for the first five years of operation. It will then institute an annual cash dividend policy of $2.50 with a constant growth rate of 3%, with the first dividend at the end of year six. The company will be in business for 25 years total. What is the stock's price if an investor wants a. a return of 10%? b. a return of 14% ? c. a return of 24%? d. a return of 35% ?

Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Computech to begin paying dividends, beginning with a dividend of $0.50 coming 3 years from today. The dividend should grow rapidly-at a rate of 31% per year-during Years 4 and 5, but after Year 5, growth should be a constant 10% per year. If the required return on Computech is 16%, what is the value of the stock today? Do not round intermediate calculations. Round your answer to the nearest cent.