Problem 1) If a company's last dividend was $ 1.00 per share and dividends are expected to grow at a rate of 6%. What is the current value of a share of this stock to an investor who requires a 10 percent rate of return?
Problem 2) What is the current per-share value of JRM Corporation to an investor who requires a 10 percent annual rate of return, if JRM's current per-share dividend is $3 and expected to remain at $3 for the foreseeable future?
Problem 3) A company is expected to pay dividends of $4.50, $4.50 and $5.50 over the next three years. The stock is expected to have a value of $50.00 three years from today. If the risk-free rate is 5%., the market risk premium 14% and Pure has a beta of 1.14, what is the current value of Pure?