1A)

The Copperfield Auction House is growing quickly. Dividends are expected to grow at 21.04% for the next three years, after which growth is expected to be a constant 2.93%. The required return is 15.52% and the company just paid a $1.77 annual dividend. What is the current share price? (Round all intermediate steps to 4 digits) (Round Answer to nearest penny)

a. $ 20.17

b. $ 25.72

c. $ 22.48

d. $ 27.78

e. $ 19.98

1B)

Her Majesty's Secret service is facing an uncertain financial future. The company expects that they will only have enough cash flow to continue paying their current dividend for 5 more years before they must stop paying a dividend altogether. HMSS has just paid a dividend of $19.08, and will continue to pay the same dividend for the next 5 years, after which they will never pay another dividend. What is the value of their stock if the discount rate is 8.97%?

a. $ 74.27

b. $ 81.62

c. $ 66.97

d. $ 76.17

e. $ 67.09

1C)

The Most Spectacular Martian Asteroid Mining Collective has for many years paid a quarterly dividend of $2.14 per share, and they did so in their last quarter as well. Today, the company has announced that all future dividends will increase by 1.44% percent quarterly. If an investor requires a 7.98% percent annual rate of return, how much should that investor be willing to pay to purchase one share of this stock today? (Round intermediate steps to 4 digits.)

a. $ 391.14

b. $ 395.91

c. $ 385.31

d. $ 396.88

e. $ 386.35

ANSWER