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1.) If the current market price for a stock is $100.00, what is the market's expectation for the growth rate of the company's dividends if

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1.) If the current market price for a stock is $100.00, what is the market's expectation for the growth rate of the company's dividends if the dividends one year from now are expected to be $4.20 per share and the required rate of return for the company's level of risk is 14.00% ? A.) 0% B.) 9.80% C.) 10.00% D.) 18.00% E.) None of the above 2.) If the value of operations for a company is $500 million, debt is $170 million, short-term investments are $40 million, and the amount of preferred stock is $160 million, what is the intrinsic value of the company's stock price if the company currently has 25 million shares. outstanding? A.) $2.10/ share B.) $5.20/ share C.) $8.40/ share D.) $21,2/ share E.) None of the above 3.) The current price of a company is $20.25/ share. The company earnings are $2.85/ share, and the company has a required return of 16% based on the stock's level of risk. How much of the current price is attributed to the present value of growth opportunities (PVGO)? A.) $0.00 B.) $2.44 C.) $17.40 D.) $17.81 E.) None of the above 4.) You invest using the Rule #1 investment strategy. The company you are analyzing has a Net Operating Profit After Taxes of $800 million. If the company debt is $400 million, and the company equity is $700 million, what is the company's Return on Invested Capital (ROIC)? A.) 0.0% B.) 26.7% C.) 58.3% D.) 72.7% E.) None of the above

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