Question: The Foreman Companys earnings and common stock dividends have been growing at an annual rate of 6 percent over the past 10 years and are

The Foreman Company’s earnings and dividends have been growing at an annual rate of 6 percent over the past 10 years and are expected to continue growing at this rate for the foreseeable future. The firm currently (that is, as of year 0) pays an annual of $5 per share. Determine the current value of a share of Foreman to investors with each of the following required rates of return:
a. 12 percent
b. 14 percent
c. 16 percent
d. 6 percent
e. 4 percent

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