Hello,Please assist with the below and complete in the attached xls. Thanks!
1. Constant-Growth Dividends: Problems 1, 2, 3, 4, and 6 on page 265
2. Zero-Growth Dividends: Problem 7 on page 265 (an annuity) and Problem 8 on page 266 (a perpetuity)
3. Two-Stage Dividend Growth: Problem 25 on page 267
1. Stock Values [LO1] The Jackson–Timberlake Wardrobe Co. just paid a dividend of $1.95 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year indefinitely. If investors require a return of 10.5 percent on The Jackson–Timberlake Wardrobe Co. stock, what is the current price? What will the price be in three years? In 15 years?
2. Stock Values [LO1] The next dividend payment by Halestorm, Inc., will be $2.04 per share. The dividends are anticipated to maintain a growth rate of 4.5 percent forever. If the stock currently sells for $37 per share, what is the required return?
3. Stock Values [LO1] For the company in the previous problem, what is the dividend yield? What is the expected capital gains yield?
4. Stock Values LO1> Caan Corporation will pay a $3.56 per share dividend next year. The company pledges to increase its dividend by 3.75 percent per year indefinitely. If you require a return of 11 percent on your investment, how much will you pay for the company’s stock today?
6.Stock Valuation LO1> Suppose you know that a company’s stock currently sells for $63 per share and the required return on the stock is 10.5 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it’s the company’s policy to always maintain a constant growth rate in its dividends, what is the current dividend per share?