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1. Problem 9.01 (DPS Calculation) ebook Problem Walk-Through Weston Corporation just paid a dividend of $3.25 a share (.e., De - $3.25). The dividend is expected to grow 10% a year for the next 3 years and then at 3% a year thereafter. What is the expected dividend per share for each of the next 5 years? Do not round intermediate calculations. Round your answers to the nearest cent. D$ D - $ Dy$ D$ Ds $ 2. Problem 9.04 (Nonconstant Growth Valuation) LO eBook Problem Walk-Through Holt Enterprises recently paid a dividend, Do. of $3.25. It expects to have no constant growth of 15% for 2 years followed by a constant rate of 5% thereafter. The firm's required a return is 19% a. How far away is the horizon date? 1. The terminal, or hortzon, date is Year since the value of a common stock is the present value of all future expected dividends at time zero II. The terminal, or horizon, date is the date when the growth rate becomes no constant. This occurs at time rero. III. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the beginning of Year 2 IV. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the end of Year 2. V. The terminal, or horizon, date is infinity since common stocks do not have a maturity date. -Select- b. What is the firm's horizon, or continuing, value? Do not round intermediate calculations. Round your answer to the nearest cent. $ c. What is the firm's intrinsie value today, Po? Do not round Intermediate calculations. Round your answer to the nearest cent, 2 3. Problem 9.10 (Valuation of a Dedining Growth Stock) eBook Problem Walk-Through Maxwell Mining Company's ore reserves are being depleted, so its sales are failing. Also, because its pit is getting deeper each year, its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 8% per year. IfD - $3 andr, -14%, what is the value of Maxwell Mining's stock? Round your answer to the nearest cent Attempts Keep the Highest /1 4. Problem 9.11 (Valuation of a Constant Growth Stock) elook Problem Walk-Through A stock is expected to pay a dividend of $2.50 at the end of the year (le, De = $2.50), and it should continue to grow at a constant rate of 10% a year. If its required return is 14% what is the stock's expected price 4 years from today? Do not round Intermediate calculations. Round your answer to the nearest cent. 5. Problem 9.13 (Constant Growth) DO ebook Problem Walk-Through You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $2.50 a share at the end of the year (D, $2.50) and has a beta of 0.9. The a risk free rate is 5.0%, and the market risk premium is 44. Justus currently sells for $43.00 a share, and its dividend is expected to grow at some constant rate. 9. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years? (That is what is Ps) Do not round Intermediate calculations, Round your answer to the nearest cent

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