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The risk-free rate is 3.96% and the market risk premium is 9.00%. A stock with a of 1.19 just paid a dividend of $2.84. The dividend is expected to grow at 20.37% for three years and then grow at 4.84% forever. What is the value of the stock?

Answer format: Currency: Round to: 2 decimal places.

#3 The risk-free rate is 3.70% and the market risk premium is 7.42%. A stock with a of 1.32 just paid a dividend of $1.09. The dividend is expected to grow at 21.86% for five years and then grow at 4.23% forever. What is the value of the stock?

Answer format: Currency: Round to: 2 decimal places.

#4 Caspian Sea Drinks needs to raise $24.00 million by issuing additional shares of stock. If the market estimates CSD will pay a dividend of $2.42 next year, which will grow at 4.46% forever and the cost of equity to be 10.81%, then how many shares of stock must CSD sell?

Answer format: Number: Round to: 0 decimal places.

#5 Suppose the risk-free rate is 2.27% and an analyst assumes a market risk premium of 7.89%. Firm A just paid a dividend of $1.14 per share. The analyst estimates the of Firm A to be 1.45 and estimates the dividend growth rate to be 4.44% forever. Firm A has 250.00 million shares outstanding. Firm B just paid a dividend of $1.77 per share. The analyst estimates the of Firm B to be 0.82 and believes that dividends will grow at 2.04% forever. Firm B has 180.00 million shares outstanding. What is the value of Firm A?

Answer format: Currency: Round to: 2 decimal places.

#6 Suppose the risk-free rate is 1.25% and an analyst assumes a market risk premium of 6.18%. Firm A just paid a dividend of $1.18 per share. The analyst estimates the of Firm A to be 1.50 and estimates the dividend growth rate to be 4.99% forever. Firm A has 284.00 million shares outstanding. Firm B just paid a dividend of $1.72 per share. The analyst estimates the of Firm B to be 0.89 and believes that dividends will grow at 2.85% forever. Firm B has 192.00 million shares outstanding. What is the value of Firm B?