The common stock of Eddie’s Engines, Incorporated, sells for…

The common stock of Eddie’s Engines, Incorporated, sells for $27.81 a share. The stock is expected to pay a dividend of $2.70 per share next year. Eddie’s has established a pattern of increasing their dividends by 4.8 percent annually and expects to continue doing so. What is the market rate of return on this stock?

Ranch Services just paid its annual dividend of $2.50 per sh…

Ranch Services just paid its annual dividend of $2.50 per share. The dividends are expected to grow at 24 percent annually for the next 4 years and then level off to an annual growth rate of 7 percent indefinitely. What is the price of this stock today given a required return of 10.25 percent?