Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

13) An analyst forecasts to have expected dividends of S1.30 year 1 (Divl), S1.45 year 2 (Div2), S1.60 year 3, (Div3), and $1.75 year 4,

image text in transcribed
image text in transcribed
image text in transcribed
13) An analyst forecasts to have expected dividends of S1.30 year 1 (Divl), S1.45 year 2 (Div2), S1.60 year 3, (Div3), and $1.75 year 4, (Div4), for Neon Tetra Company. After the fourth year the dividends will grow at a constant rate of 2.00% per year. Equity Cost of Capital (Re) is 7.00%. Calculate the current stock price P0 using the Dividend Discount Model modified formula with (DivN+1/Re-G) on the end resulting in Pn Stock Price. 14) An analyst forecasts to have expected dividends of $2.40 year 1 (Divl), $2.60 year 2 (Div2), $2.80 year 3 (Div3), $3.00 year 4 (Div4), and $3.20 year 5 (Div5) for Octopus Company. After the fifth year the dividends will grow at a constant rate of 3% per year. Equity Cost of Capital (Re) is 9.00%. Calculate the current stock price P0 using the Dividend Discount Model modified formula with (DivN+1/Re-G) on the end resulting in Pn Stock Price. .15) An analyst forecasts to have expected dividends of S3.12 year 1 (Divl), S3.30 year 2 (Div2), and $3.48 year 3 (Div3) for Porcupine Company. After the third year the dividends will grow at a constant rate of 100 per year. Equity Cost of Capital ( Re) is 8.00%. Calculate the current stock price PO using the Dividend Discount Model modified formula with (DivN+1/Re-G) on the end resulting in Pn Stock Price. .16) An analyst forecasts to have expected dividends of $1.25 one year from now for Racoon Company. The dividends are expected to grow at 9.00% per year thereafter until the fourth vear. After the fourth year the dividends will grow at a constant rate of 2.00% per year. Equity Cost of Capital is 7.00% Re. Calculate the current stock price P0 using the Dividend Discount Model modified formula with (DivN+1/Re-G) on the end resulting in Pn Stock Price. .17) An analyst forecasts to have expected dividends of S4.20 one year from now for Salamander Company. The dividends are expected to grow at 8.00% per year thereafter until the fifth year. After the fifth year the dividends will grow at a constant rate of 3.00% per year. Equity Cost of Capital is 5.00% Re. Calculate the current stock price PO using the Dividend Discount Model modified formula with (DivN+1/Re-G) on the end resulting in Pn Stock Price .18) An analyst forecasts to have expected dividends of S.75 one year from now for Turtle Company. The dividends are expected to grow at 12.00% per year thereafter until the fourth year. After the fourth year the dividends will grow at a constant rate of 2.00% per year. Equity Cost of Capital is 4.00% Re. Calculate the current stock price PO using the Dividend Discount Model modified formula with (DivN+1/Re-G) on the end resulting in Pn Stock Price

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance For Dummies

Authors: Eric Tyson

5th Edition

0470038322, 978-0470038321

More Books

Students also viewed these Finance questions