FINANCE-Feinstein’s Breweries currently (d0) pays a $1.00 common stock dividend.

Question
Chapter 7 Problems
Problem 4
Feinstein’s Breweries currently (d0) pays a $1.00 common stock dividend. Dividends have been recently growing at a 10 percent annual rate and are expected to continue growing at this rate for the next three years. Thereafter the growth rate is expected to be 5 percent for the foreseeable future.
Current Dividend $1.00
1st Growth Rate 10%
2nd Growth Rate 5%
Required Rate of Return 13%
What is the current value of Feinstein’s Breweries’ common stock to an investor requiring a 13% rate of return?
Expected Year 1 Dividend
Expected Year 2 Dividend
Expected Year 3 Dividend
Expected Year 3 Price
Current Value
Problem 5
Brooksman’s High Roller Casinos currently (d0) pays $5.00 common stock dividend. Dividends have been recently growing at a 12 percent annual rate and are expected to continue growing at this rate for the next four years. Thereafter the growth rate is expected to be 6 percent for the foreseeable future.
Current Dividend $5.00
1st Growth Rate 12%
2nd Growth Rate 6%
Required Rate of Return 15%
What is the current value of Brooksman’s High Roller Casinos common stock to an investor requiring a 15% rate of return?
Expected Year 1 Dividend
Expected Year 2 Dividend
Expected Year 3 Dividend
Expected Year 4 Dividend
Expected Year 4 Price
Current Value