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DPS Calculation Thress Industries just paid a dividend of $ 1.50 a share ( i., D0 $ 1. The dividend is expected to grow 5% a year for the next 3...

8-1: DPS Calculation
Thress Industries just paid a dividend of $ 1.50 a share ( i. e., D0 $ 1.50). The dividend is expected to grow 5% a year for the next 3 years, and then 10% a year thereafter. What is the expected dividend per share for each of the next 5 years?
8-2: Constant Growth Valuation
Boehm Incorporated is expected to pay a $ 1.50 per share dividend at the end of the year ( i. e., D1 =$ 1.50). The dividend is expected to grow at a constant rate of 7% a year. The required rate of return on the stock, rs, is 15%. What is the value per share of the company's stock?
8-3: Constant Growth Valuation
Woidtke Manufacturings stock currently sells for $ 20 a share. The stock just paid a dividend of $ 1.00 a share ( i. e., D0 =$ 1.00). The dividend is expected to grow at a constant rate of 10% a year. What stock price is expected 1 year from now? What is the required rate of return on the company's stock?
8-4: Preferred Stock Valuation
Basil Pet Products has preferred stock outstanding which pays a dividend of $ 5 at the end of each year. The preferred stock sells for $ 50 a share. What is the preferred stocks required rate of return?

This question was asked on May 06, 2010.

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