Arts and Crafts, Inc. will pay a dividend of $9 per share in 1 year. It sells at $90 a share, and firms in the same industry provide an expected rate of return of 15%. What must be the expected growth rate of the companys dividends? (Do not round intermediate calculations. Enter your answer as a whole percent.)

	Expected growth rate %

A stock sells for $25. The next dividend will be $4 per share. If the rate of return earned on reinvested funds is a constant 15% and the company reinvests a constant 40% of earnings in the firm, what must be the discount rate? (Do not round your intermediate calculations. Enter your answer as a whole percent.)

	Discount rate %

Gentleman Gym just paid its annual dividend of $4 per share, and it is widely expected that the dividend will increase by 5% per year indefinitely.

a. What price should the stock sell at if the discount rate is 12%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

	Stock price.

b. What price should the stock sell at if the discount rate is 10%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

	Stock price.

You believe that the Non-Stick Gum Factory will pay a dividend of $2 on its common stock next year. Thereafter, you expect dividends to grow at a rate of 8% a year in perpetuity. If you require a return of 15% on your investment, how much should you be prepared to pay for the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

	Stock price.

Fincorp will pay a year-end dividend of $2.60 per share, which is expected to grow at a rate of 2% for the indefinite future. The discount rate is 6%.

a. What is the stock selling for? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

	Stock price

b. If earnings are $3.60 a share, what is the implied value of the firms growth opportunities? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

	Implied value