Aa v A AL AaBbCcDdEe AaBbCcDdEe AaBbCcDc AabCcDdEt AaBb y Normal No Spacing Heading 1 Heading 2 Title 7 A share of common stock just paid a dividend of $1 (Do = $1). If the expected long-run growth rate for this stock is 5.4%, and if investors' required rate of return is 11.4%, what is the stock price today? The zero growth stock and the constant growth stock do not allow for any change in expected dividend growth rates. If the future dividend growth rates might increase or decrease due to changing business nditions, it is useful to consider a variable-growth model, which allows for a change in the dividend growth rate. = True or False Molen Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $7.5 per share. If the required return on this preferred stock is 6.5%, at what price should the stock sell? IF