2. Abc enterprise stock is currently selling for $54 per share. The dividend is projected to increase at a constant rate of 3.1% per year. The required rate of return on the stock is 12%. What is the stocks expected price 5 years from today( i.e solve for P5)

3. The common stock of ABC Industries is valued at $88.6 a share. The company increases their dividend by 12.9 percent annually and expects their next dividend to be $4.7. What is required rate of return on this stock? That is, solve for r.

4. Abc is expected to pay a dividend of $5.5. per share at the end of the year. The stock sells for $64 per share, and its required rate of return is 18.5%. The dividend is expected to grow at some constant rate, g, forever. What is the growth rate (i.e. solve for g)?

5. A stock is expected to pay a dividend of $1.6 at the end of the year. The re required rate of return is r= 9.6%, and the expected constant growth rate is g =7.7%. What is the stock's current price?

6. If D= $4.7, g=7.8%, and P=$67.9, what is the required rate of return on the stock? That is, solve for r.

7. Abcs last dividend paid was $1, it's required rate is `4.6%, its growth rate is 4.4%, and its growth rate is expected to be constant in the future. What is Sorenson's expected stock price in 7 years, i.e., what is P7?

8. Abcs last dividend was $1.8. The dividend growth rate is expected to be constant at 26% for 3 years, after which dividends are expected to grow at a rate of 5% forever. If the firm's required return (r) is 15%, what is its current stock price( i.e. solve for Po)

9. If D= $2, g ( which is constant)=2.4%, and P= $70.4, what is the required rate of return on the stock? That is, solve for r.

10. A stock just paid a dividend of D=$0.5. The required rate of return is r=14.3%, and the constant growth rate is =5.1%. What is the current stock price?

11. Abc's stock has a required rate of return of 12.8%, and it sells for $60 per share. The dividend is expected to grow at a constant rate of 8.4% per year. What is the expected year-end dividend, D1?

12. IdfD1=$2.49 and Po= $111.11, what is the dividend yield?

13. Abc just paid a dividend of Do= $4. Analysts expect the company's dividend to grow by 33% this year, by 28% in Year 2, and at a constant rate of 6% in Year 3 and thereafter. The required return on this stock is 17%. What is the best estimate of the stock's current market value?

14. The common stock of Wetmore Industries is valued at $44.1 a share. The company increases their dividend by 3.5 percent annually and expects their next dividend to be $1.4. What is the required rate of return on this stock? That is, solve for r.

15. Abc inc., is expected to pay an annual dividend of $3.7 per share next year. The required rate of return is 16.4 percent and the growth rate is 3.5 percent. What is the expected value of this stick five years from now?

16. Abc Enterprises stock is expected to pay a dividend of $1.2 per share. The dividend is projected to increase at a constant rate of 4% per year. The required rate of return on the stock 14.4%. What is the stock's expected price 3 years from today (i.e. solve for P3)?

Q U E S T I O N 1 S H O W W O R K I N E XC E L 1. ABC Company's last dividend was $4.3. The dividend growth rate is expected to be constant at 30% for 2 years, after which dividends are expected to grow at a rate of 7% forever. The firm's required return (rs) is 13%. What is its current stock price (i.e. solve for Po)? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box. 112.13 1 points QUESTION 2 1. ABC Enterprises' stock is currently selling for $54 per share. The dividend is projected to increase at a constant rate of 3.1% per year. The required rate of return on the stock is 12%. What is the stock's expected price 5 years from today (i.e. solve for P5)? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box. 1 points QUESTION 3 1. The common stock of ABC Industries is valued at $88.6 a share. The company increases their dividend by 12.9 percent annually and expects their next dividend to be $4.7. What is the required rate of return on this stock? That is, solve for r. Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. 1 points QUESTION 4 1. ABC is expected to pay a dividend of $5.5 per share at the end of the year. The stock sells for $64 per share, and its required rate of return is 18.5%. The dividend is expected to grow at some constant rate, g, forever. What is the growth rate (i.e. solve for g)? Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. 1 points QUESTION 5 1. A stock is expected to pay a dividend of $1.6 at the end of the year. The required rate of return is rs = 9.6%, and the expected constant growth rate is g = 7.7%. What is the stock's current price? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box. 1 points QUESTION 6 1. If D0 = $4.7, g = 7.8%, and P0 = $67.9, what is the required rate of return on the stock? That is, solve for r. Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. 1 points QUESTION 7 1. ABC's last dividend paid was $1, its required return is 14.6%, its growth rate is 4.4%, and its growth rate is expected to be constant in the future. What is Sorenson's expected stock price in 7 years, i.e., what is P7? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box. 1 points QUESTION 8 1. ABC's last dividend was $1.8. The dividend growth rate is expected to be constant at 26% for 3 years, after which dividends are expected to grow at a rate of 5% forever. If the firm's required return (rs) is 15%, what is its current stock price (i.e. solve for Po)? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box. 1 points QUESTION 9 1. If D1 = $2, g (which is constant) = 2.4%, and P0 = $70.4, what is the required rate of return on the stock? That is, solve for r. Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. 1 points QUESTION 10 1. A stock just paid a dividend of D0 = $0.5. The required rate of return is rs = 14.3%, and the constant growth rate is g = 5.1%. What is the current stock price? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box. 1 points QUESTION 11 1. ABC's stock has a required rate of return of 12.8%, and it sells for $60 per share. The dividend is expected to grow at a constant rate of 8.4% per year. What is the expected year-end dividend, D1? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box. 1 points QUESTION 12 1. If D1 = $2.49 and P0 = $111.11, what is the dividend yield? Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. 1 points QUESTION 13 1. ABC just paid a dividend of D0 = $4. Analysts expect the company's dividend to grow by 33% this year, by 28% in Year 2, and at a constant rate of 6% in Year 3 and thereafter. The required return on this stock is 17%. What is the best estimate of the stock's current market value? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box. 1 points QUESTION 14 1. The common stock of Wetmore Industries is valued at $44.1 a share. The company increases their dividend by 3.5 percent annually and expects their next dividend to be $1.4. What is the required rate of return on this stock? That is, solve for r. Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. 1 points QUESTION 15 1. ABC Inc., is expected to pay an annual dividend of $3.7 per share next year. The required return is 16.4 percent and the growth rate is 3.5 percent. What is the expected value of this stock five years from now? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box. 1 points QUESTION 16 1. ABC Enterprises' stock is expected to pay a dividend of $1.2 per share. The dividend is projected to increase at a constant rate of 4% per year. The required rate of return on the stock is 14.4%. What is the stock's expected price 3 years from today (i.e. solve for P3)? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box