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#1 #2 The risk-free rate is 1.16% and the market risk premium is 6.89%. A stock with a of 1.74 just paid a dividend

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#1 #2 The risk-free rate is 1.16% and the market risk premium is 6.89%. A stock with a of 1.74 just paid a dividend of $1.71. The dividend is expected to grow at 20.72% for three years and then grow at 3.11% forever. What is the value of the stock? Submit Answer format: Currency: Round to: 2 decimal places. The risk-free rate is 3.90% and the market risk premium is 6.46%. A stock with a of 1.14 just paid a dividend of $1.86. The dividend is expected to grow at 20.01% for five years and then grow at 4.89% forever. What is the value of the stock? Submit Answer format: Currency: Round to: 2 decimal places. #3 Caspian Sea Drinks needs to raise $79.00 million by issuing additional shares of stock. If the market estimates CSD will pay a dividend of $1.01 next year, which will grow at 4.34% forever and the cost of equity to be 11.21%, then how many shares of stock must CSD sell? Submit Answer format: Number: Round to: 0 decimal places. #4 #5 Suppose the risk-free rate is 2.62% and an analyst assumes a market risk premium of 5.10%. Firm A just paid a dividend of $1.25 per share. The analyst estimates the of Firm A to be 1.39 and estimates the dividend growth rate to be 4.90% forever. Firm A has 296.00 million shares outstanding. Firm B just paid a dividend of $1.79 per share. The analyst estimates the of Firm B to be 0.83 and believes that dividends will grow at 2.07% forever. Firm B has 184.00 million shares outstanding. What is the value of Firm A? Submit Answer format: Currency: Round to: 2 decimal places. Suppose the risk-free rate is 1.07% and an analyst assumes a market risk premium of 5.12%. Firm A just paid a dividend of $1.06 per share. The analyst estimates the of Firm A to be 1.38 and estimates the dividend growth rate to be 4.73% forever. Firm A has 273.00 million shares outstanding. Firm B just paid a dividend of $1.81 per share. The analyst estimates the of Firm B to be 0.78 and believes that dividends will grow at 2.21% forever. Firm B has 192.00 million shares outstanding. What is the value of Firm B? Submit Answer format: Currency: Round to: 2 decimal places.

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