Question
1. Weston Corporation just paid a dividend of $2.5 a share (i.e., D0 = $2.5). The dividend is expected to grow 12% a year for
1. Weston Corporation just paid a dividend of $2.5 a share (i.e., D0 = $2.5). The dividend is expected to grow 12% a year for the next 3 years and then at 4% a year thereafter. What is the expected dividend per share for each of the next 5 years? Do not round intermediate calculations. Round your answers to the nearest cent.
2. Tresnan Brothers is expected to pay a $1.40 per share dividend at the end of the year (i.e., D1 = $1.40). The dividend is expected to grow at a constant rate of 3% a year. The required rate of return on the stock, rs, is 16%. What is the stock's current value per share? Round your answer to the nearest cent.
5. Scampini Technologies is expected to generate $100 million in free cash flow next year, and FCF is expected to grow at a constant rate of 7% per year indefinitely. Scampi has no debt or preferred stock, and its WACC is 11%, and it has zero nonoperating assets. If Scampini has 55 million shares of stock outstanding, what is the stock's value per share? Do not round intermediate calculations. Round your answer to the nearest cent.
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