Question
1.You observe a stock price of $30.25. You expect a dividend growth rate of 4%, and the most recent dividend was $2.50. What is the
1.You observe a stock price of $30.25. You expect a dividend growth rate of 4%, and the most recent dividend was $2.50. What is the required return?
2.Current forecasts are for Amenuveve Company to pay dividends of $2, $2.24, and $2.50 over the next three years, respectively. At the end of three years you anticipate selling your stock at a market price of $84.48. What is the price of the stock given a 12% expected return?
3.Guinness Ghana is about to undertake a project which requires initial investment of $300,000. The expected cash inflows from year 1 to year 5 are $80,000, $100,000, $110,000, $80,500 and $100,500 respectively. The required rate of return is 12%. Find the NPV of the project *
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