1. The Onboard Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 19.7 percent a year for the next 3 years and then decreasing the growth rate to 3.5 percent per year. The company just paid its annual dividend in the amount of $1.18 per share. What is the current value of one share of this stock if the required rate of return is 11.2 percent?

2. Screenshot, Inc., just paid a dividend of $3.26 per share on its stock. The dividends are expected to grow at a constant rate of 3.3 percent per year, indefinitely. Assume investors require an 11.4 percent return on this stock. What is the expected price of this stock in 13 years?

3. Orca, Inc. announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $1.28 a share. The following dividends will be $1.36, $1.5, and $2.52 a share annually for the following three years, respectively. After that, dividends are projected to increase by 4.4 percent per year. How much are you willing to pay today to buy one share of this stock if your required rate of return is 10.6 percent?

4. Revelation Co. just paid its annual dividend of $4.1 per share. The company has been reducing the dividends by 9.8 percent each year. How much are you willing to pay today to purchase stock in this company if your required rate of return is 13.9 percent?

5. TrueCrypt Co. has made a new issue of preferred stock. The stock will pay a regular annual dividend of $23, but the first dividend will be paid only 17 years from now. If your required rate of return is 10.88 percent, how much would you be willing to pay for it today?