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Supernormal Growth, Negative Growth, and Dividends

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Needs to be done on excel spreadsheet. Please be as explicit as possible. Thanks

1. Supernormal Growth. Finley Co. is growing quickly. Dividends are expected to grow at 25 percent rate for the next three years, with a growth rate falling off to a constant 6 percent thereafter. If the required rate of return is 14 percent and the company just paid a $2.50 dividend, what is the current share price?

2. Negative Growth. Antiques 'R'Us is a mature manufacturing firm. The company just paid a $10. dividend, but management expects to reduce the payout by 10% per year, indefinitely. If you require a 13 percent return on this stock, what will you pay for a share today?

3. Finding the Dividend. Tubby Corporation stock currently sells for $72 per share. The market requires a 14 percent return on the firm's stock. If the company maintains a constant 6 percent growth rate in dividends, what was the most recent dividend per share paid on the stock?

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