Black Hole Inc (BHI), a telescope manufacturer located in southern California, just reported earnings per share (EPS) today of $2.00 and is expected to grow its earnings by 15% per year for the next three years. After which, their earnings growth will settle down to 5% per year. The CFO of BHI just announced that the firm will never pay a single dividend to any of its shareholders. The management team is fully entrenched and there is no chance of a successful takeover. If investors demand a 12% return, what is the price of BHI’s stock? 2.)Miller Brothers Hardware paid an annual dividend of $1.69 per share last month. Today, the company announced that future dividends will be increasing by 2.6 percent annually. If you require a 12 percent rate of return, how much are you willing to pay to purchase one share of this stock today? 3.)National Warehousing just announced it is increasing its annual dividend to $3.51 next year and establishing a policy whereby the dividend will increase by 1.91 percent annually thereafter. How much will one share of this stock be worth 8 years from now if the required rate of return is 10.16 percent? 4.)Combined Communications is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 15 percent a year for the next 4 years and then decreasing the growth rate to 3.5 percent per year. The company just paid its annual dividend in the amount of $0.20 per share. What is the current value of one share of this stock if the required rate of return is 15.5 percent?