Quantitative Problem 1t Hubbard Industries just paid a common dividend, De, of $1.20. It expects to grow at a censtant rate of 3% per year. If investors require a gt, return on equity, what is the current price of Hubbard's common stock? Do not round intermediate colculations. Round your answer to the nearest cent. 5 per share Zero Growth Stocks: The constant growth model is sutficiently general to handin the case of a zero growth stock, where the divdend is expected to reman constant over time, tn this situation, the equation ist P0=4p Note that this is the same equation developed in Chapter 5 to value a perpetuity, and it is the same equation used to value a perpetual preferred stock that entities its owners to reqular, foxed dividend payments in perpetuity, The valuation equation is simply the current dividend divided by the required rate of return. Quantitative Probiem 2: Carlysie Corporation has perpetual preferred stock outstanding that pays a constant annusi dividend of s1,30 at the end of each vear. If invertors require an 10w return on the preferred stock, what is the price of the firm's perpetual preferred stock? Round your aniwer to the nearest cent. 3 per share Nonconstant Growth Stocks: For many companies, it is not appropriate to assume that dividends will grow at a constant rate. Most firms go through life cycles where they experience different growth rates during different parts of the cycle. For valuing these firms, the generalized valuation and the constant growth equations are combined to arrive at the nonconstant growth valuation equation: P0=[(+ri)2Di+(1+0)2Di++(1+r0)3Dy+(1+ri)2P^N Basically, this equation calculates the present value of dividends received during the nonconstant growth period and the present value of the szock's horizon value, which is the value at the horizon date of all dividends expected thereafter. Quantitative Problem 3t Assume today is December 31, 2019. Inagine Works inc. just paid a dividend of s1.35 per share at the end of 2019: The dividend is expected to grom at 15% per year for 3 years, after which time it is expected to grow at a constant rate of 6% annually. The company's cost of equity (ri) is 9.5%. Using the dividend gromeh ingdei (allowing for nonconstant growth), what should be the price of the company's stock today (December 31,2019 )? Do nok round intermediate calculations. Round yeur answer to the nearest cent