Question
1. XYZ used an investment bank to do IPO. In IPO, XYZ sold 1 million shares at $65.34 each. The investment bank charged 7% spread.
1. XYZ used an investment bank to do IPO. In IPO, XYZ sold 1 million shares at $65.34 each. The investment bank charged 7% spread. At the end of the 1st day of trading, XYZ stock price closed at $77.15. Calculate the total cost of IPO. That is, what is the sum of direct and indirect cost? Enter your answer rounded off to two decimal points pls.
2.ABC, Inc.'s stock is currently selling for $226.99. The dividends are expected to grow at 5.77% each year forever. If the required rate of return on the stock is 18.2%, what is next period's dividend? That is, solve for D1.Enter your answer rounded off to two decimal points pls.
3. ABC. Inc is expected to pay a dividend of $49.21 per share. The dividends are expected to increase by 7% each year. The required rate of return on the stock is 23%. What is the stock's expected price 10 years from today (i.e., what is P10)?
4.ABC, Inc. pays a dividend of $1.67 per year. If the required rate of return on ABC's stock is 8.74% per year, what is today's price of the stock?Enter your answer rounded off to two decimal points pls.
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