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1a. The risk-free rate is 2.26% and the market risk premium is 5.41%. A stock with a of 1.77 just paid a dividend of $1.52.

1a. The risk-free rate is 2.26% and the market risk premium is 5.41%. A stock with a of 1.77 just paid a dividend of $1.52. The dividend is expected to grow at 23.75% for three years and then grow at 3.73% forever. What is the value of the stock? (round to 2 decimals)

1b. The risk-free rate is 1.20% and the market risk premium is 9.18%. A stock with a of 1.51 just paid a dividend of $1.90. The dividend is expected to grow at 24.18% for five years and then grow at 3.94% forever. What is the value of the stock? (round to 2 decimals)

1c. Caspian Sea Drinks needs to raise $56.00 million by issuing additional shares of stock. If the market estimates CSD will pay a dividend of $1.92 next year, which will grow at 4.64% forever and the cost of equity to be 11.64%, then how many shares of stock must CSD sell? (round to 0 decimals)

1d. Suppose the risk-free rate is 3.54% and an analyst assumes a market risk premium of 5.53%. Firm A just paid a dividend of $1.24 per share. The analyst estimates the of Firm A to be 1.44 and estimates the dividend growth rate to be 4.01% forever. Firm A has 258.00 million shares outstanding. Firm B just paid a dividend of $1.98 per share. The analyst estimates the of Firm B to be 0.82 and believes that dividends will grow at 2.72% forever. Firm B has 183.00 million shares outstanding. What is the value of Firm A? (round to 2 decimals)

1e. Suppose the risk-free rate is 2.21% and an analyst assumes a market risk premium of 7.87%. Firm A just paid a dividend of $1.38 per share. The analyst estimates the of Firm A to be 1.42 and estimates the dividend growth rate to be 4.15% forever. Firm A has 251.00 million shares outstanding. Firm B just paid a dividend of $1.73 per share. The analyst estimates the of Firm B to be 0.90 and believes that dividends will grow at 2.89% forever. Firm B has 188.00 million shares outstanding. What is the value of Firm B? (round to 2 decimals)

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