5,6,7,8,9,10,11

Assume the following variables on WJE shares of common stock in answering the next four questions. Use the dividend growth model formula. D0=$1.50;k=9%;g=4% 5. Calculate the price of these shares? 6. If the dividend increases next quarter to $3.25 and the growth rate remains the same, what is the new price of WJE shares? 7. If the required return on WJE falls to 6%, what is the new price of these shares? (Assume the other variables remain the same as they were originally) 8. If the growth of WJE slows to 3%, what will be the price of the shares? (Assume the other variables remain the same as they were originally) Assume the following information for ABC stock in answering the following four questions: ABC stock has a beta of 1.5, the average stock on the market yields 7.3%, and the rate of return on a risk-free investment is 3.3%. 9. What is the market risk premium? 10. What is the expected return on ABC stock? 11. If you are currently earning a 10.1% return on your investments, should you purchase this stock? Please explain