Fowler, Inc., just paid a dividend of $2.70 per share on its stock. The dividends are expected to grow at a

constant rate of 4.5 percent per year, indefinitely. Assume investors require a return of 9 percent on this stock.

a.What is the current price? 

b.What will the price be in six years and in thirteen years?

The next dividend payment by Hoffman, Inc., will be $3.20 per share. The dividends are anticipated to maintain a growth rate of 6.75 percent forever. Assume the stock currently sells for $50.00 per share.

a.What is the dividend yield? 

b.What is the expected capital gains yield?

The stock price of Alps Co. is $53.30. Investors require a return of 15 percent on similar stocks. If the company plans to pay a dividend of $3.30 next year, what growth rate is expected for the company’s stock price? 

Synovec Corporation is expected to pay the following dividends over the next four years: $6.80, $17.80, $22.80, and $4.60. Afterward, the company pledges to maintain a constant 5.75 percent growth rate in dividends forever.

If the required return on the stock is 8 percent, what is the current share price?

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