Question
1. If the current dividend (D0) is $3 is expected to grow at 5% per year then what is the expected dividend per share is
1. If the current dividend (D0) is $3 is expected to grow at 5% per year then what is the expected dividend per share is 3 years?
2. Mathias Brothers is expected to pay a $1 per share dividend at the end of the year (D1 = $1). The dividend is expected to grow at a constant rate of 6% per year and the required rate of return on the stock is 14%. What is the stocks intrinsic value?
3. Soul Enterprises recently paid a dividend, D0, of $1. It expects to have non constant growth of 10% for 3 years followed by a constant rate of 6% thereafter. The firms required rate of return is 11%. What is the horizon value at the end of year 3?
4. Soul Enterprises recently paid a dividend, D0, of $1. It expects to have non constant growth of 10% for 3 years followed by a constant rate of 6% thereafter. The firms required rate of return is 11%. What is the intrinsic value of the stock today?
5. Wesson Technologies is expected to generate $100 million in FCF next year and FCF is expected to grow at a constant rate of 4% per year. Wesson has $200 million in debt, no preferred stock, and its WACC is 12%. If Wesson has 40 million shares of stock outstanding, what is the stocks value per share?
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