Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

3050 Module 10 pat Bas X FNCE 3050 HW10 Questions. X W Jamaica docx X + s/u-d2466a55b25d68aece37d9d924776ace098495ee/MyFiles/Downloads/FNCE%203050%20HW1020Questions pdf Section Two-Harder (s points each) You are

image text in transcribed
3050 Module 10 pat Bas X FNCE 3050 HW10 Questions. X W Jamaica docx X + s/u-d2466a55b25d68aece37d9d924776ace098495ee/MyFiles/Downloads/FNCE%203050%20HW1020Questions pdf Section Two-Harder (s points each) You are evaluating shares in Lyft (LYFT). They currently pay an annual dividend of $10.00 per share this year but expect to 9 Increase this payout by 10% next year and the following year. Then, as the company matures, it expects that dividends will only grow by 5% per year thereafter. If you use of discount rate of 20%, what is the value of the shares? 10 You are evaluating shares in Schlumberger (S1B). They currently pay an annual dividend of $5.50 per share this year but expect to increase this payout by SX next year and the two following years. Then, as the company matures, it expects that dividends will grow by 2% per year thereafter. If you use of discount rate of 12%, what is the value of the shares? 11 You are evaluating shares in Microsoft (MSFT) and comparing it to Alphabet (GOOG). MSFT is trading at $51.00 per share, had EPS last year of $1.95 per share and is expected to have EPS of S205 per share this year. GOOG is trading at $120.00 per share, had EPS last year of $5.00 per share and is expected to have EPS of $5.10 per share this year. You believe that GOOG mature and should trade at the same forward P/E as MSFT. Assuming you are right, compute GOOGs expected stock price 12 You are evaluating shares in Telsa (TSLA) and comparing it to General Motors (GM). TSL is trading at $250.00 per share, had EPS last year of $12.50 per share and is expected to have EPS which is 5% higher this year. GM is trading at $25.00 per share, had EPS last year of $1.50 per share and is expected to have EPS which is 2% higher this year. You believe that TSLA mature and should trade at the same forward P/E as GM. Assuming you are right, compute TSLAs expected stock price REC 3050 Module 10 pat Bas X FNCE 3050 HW10 Questions. X W Jamaica docx X + s/u-d2466a55b25d68aece37d9d924776ace098495ee/MyFiles/Downloads/FNCE%203050%20HW1020Questions pdf Section Two-Harder (s points each) You are evaluating shares in Lyft (LYFT). They currently pay an annual dividend of $10.00 per share this year but expect to 9 Increase this payout by 10% next year and the following year. Then, as the company matures, it expects that dividends will only grow by 5% per year thereafter. If you use of discount rate of 20%, what is the value of the shares? 10 You are evaluating shares in Schlumberger (S1B). They currently pay an annual dividend of $5.50 per share this year but expect to increase this payout by SX next year and the two following years. Then, as the company matures, it expects that dividends will grow by 2% per year thereafter. If you use of discount rate of 12%, what is the value of the shares? 11 You are evaluating shares in Microsoft (MSFT) and comparing it to Alphabet (GOOG). MSFT is trading at $51.00 per share, had EPS last year of $1.95 per share and is expected to have EPS of S205 per share this year. GOOG is trading at $120.00 per share, had EPS last year of $5.00 per share and is expected to have EPS of $5.10 per share this year. You believe that GOOG mature and should trade at the same forward P/E as MSFT. Assuming you are right, compute GOOGs expected stock price 12 You are evaluating shares in Telsa (TSLA) and comparing it to General Motors (GM). TSL is trading at $250.00 per share, had EPS last year of $12.50 per share and is expected to have EPS which is 5% higher this year. GM is trading at $25.00 per share, had EPS last year of $1.50 per share and is expected to have EPS which is 2% higher this year. You believe that TSLA mature and should trade at the same forward P/E as GM. Assuming you are right, compute TSLAs expected stock price REC

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Elementary Statistics

Authors: Neil A. Weiss

8th Edition

9780321691231

Students also viewed these Finance questions