2. Problem 9.02 Click here to read the eBook: Constant Growth Stocks CONSTANT GROWTH VALUATION Tresnan Brothers is expected to pay a $1.8 per share dividend at the end of the year (i.e., D1 = $1.8). The dividend is expected to grow at a constant rate of 4% a year. The required rate of return on the stock, rs, is 17%. What is the stock's current value per share? Round your answer to two decimal places. $ 3. Problem 9.03 Click here to read the eBook: Constant Growth Stocks CONSTANT GROWTH VALUATION Holtzman Clothiers's stock currently sells for $31 a share. It just paid a dividend of $4 a share (i.e., Do = $4). The dividend is expected to grow at a constant rate of 4% a year a. What stock price expected 1 year from now? Round your answer to two decimal places. b. What the required rate of return? Round your answer to two decimal places. Do not round your intermediate calculations. % 4. Problem 9.04 Click here to read the eBook: Valuing Nonconstant Growth Stocks NONCONSTANT GROWTH VALUATION Holt Enterprises recently paid a dividend, Do, of $1.75. It expects to have nonconstant growth of 14% for 2 years followed by a constant rate of 3% thereafter. The firm's required return is 13%. a. How far away is the horizon date? I. The terminal, or horizon, date is Year O 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 nonconstant. This occurs at time zero. 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? Round your answer to two decimal places. Do not round your intermediate calculations. $ c. What is the firm's intrinsic value today, Po? Round your answer to two decimal places. Do not round your intermediate calculations. 5. Problem 9.07 Click here to read the eBook: Preferred Stock PREFERRED STOCK RATE OF RETURN What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 10% of par, and a current market price of (a) $51.00, (b) $82.00, (c) $105.00, and (d) $134.00? Round your answers to two decimal places. % b. % c. % d. %