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# 1 The risk - free rate is 3 . 9 9 % and the market risk premium is 5 . 0 4 % .

#1
The risk-free rate is 3.99% and the market risk premium is 5.04%. A stock with a of 0.92 just paid a dividend of $2.15. The dividend is expected to grow at 22.13% for three years and then grow at 3.48% forever. What is the value of the stock?
Answer format: Currency: Round to: 2 decimal places.
The risk-free rate is 2.87% and the market risk premium is 6.60%. A stock with a of 0.99 just paid a dividend of $2.11. The dividend is expected to grow at 23.94% for five years and then grow at 4.48% forever. What is the value of the stock?
Answer format: Currency: Round to: 2 decimal places.
#3
Caspian Sea Drinks needs to raise $42.37 million by issuing additional shares of stock. If the market estimates CSD will pay a dividend of $2.36 next year, which will grow at 4.61% forever and the cost of equity to be 14.72%, then how many shares of stock must CSD sell?
Answer format: Number: Round to: 0 decimal places.
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