Show your calculations. 1) The current annual dividend is $0.75. Dividends are expected to grow at a rate of 12% over the next three years, decline linearly to 4% over the next six years, and then remain at a long-term equilibrium growth rate of 4% in perpetuity. The required return is 9%. Calculate the value of the company. A) $28.03 B) $23.20 C) $26.97 2) Beluga Fisheries, Inc just paid a current dividend of $0.75, which has been growing at a rate of 10%. This growth rate is expected to decline to 5% over the next five years and then remain at 5% indefinitely. Calculate the implied required return for Beluga based on the current price of $30.00 A) 7.94% B) 5.5% C) 5.33% 3) Ozone laboratories, Inc. recently paid a dividend of $1.00. Dividends are expected to grow at a rate of 11% for the next two years and 8% thereafter. Calculate the implied required return for Ozone based on the current price of $36. A) 11.90% B) 11.20% C) 12.25%

- B 23.20 2. A 7.94% 3. closest comes to B. 11.2%