Question
1. If the current dividend (Do) is $3 is expected to grow at 5% per year, then what is the expected dividend per share is
1. If the current dividend (Do) is $3 is expected to grow at 5% per year, then what is the expected dividend per share is 3 years? (express answer in dollars and cents)
__________
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 stock's intrinsic value? (express answer in dollars in cents).
__________
3. 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 stock's value per share?
A. $27.50
B. $32.50
C. $31.25
D. $26.25
THANK YOU IN ADVANCE!!!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started