13. An analyst is valuing Red Inc. common stock using the dividend discount model. The company plans to start paying dividends with its first dividend of $3.25 per share occurring next year. To estimate growth, the analyst uses a perpetual growth rate of 4%. The analyst estimates the required return for Red Inc. of 8%. What is the per-share value of Red Inc.?

14. AT&T stock (T) just paid an annual dividend of $1.75 for the most recent year. The current stock price is $38. Assuming investors expect a constant growth rate in dividends of 6% into perpetuity, what is the implied required return being demanded by investors?

15. Philip Morris Intl (PM) just paid an annual dividend of $3.40 for the most recent year. The current stock price is $90. Assuming investors demand a required return of 11% on PM stock, what is the implied perpetual growth rate in dividends expected by investors?

16. Goldman Sachs has a preferred stock issue outstanding with a par value per share of $25. The stated annual dividend on the preferred stock is 6.20%, or $1.55 per share per year (6.20% of par value). The current price per share of the preferred stock is $22.15. Given the current price, what is the implied return that investors are requiring for their investment in this Goldman Sachs preferred issue?