A.)

The risk-free rate is 3.29% and the market risk premium is 7.87%. A stock with a of 0.87 just paid a dividend of $1.58. The dividend is expected to grow at 21.28% for three years and then grow at 3.30% forever. What is the value of the stock?

B.)

The risk-free rate is 2.11% and the market risk premium is 8.14%. A stock with a of 1.53 just paid a dividend of $1.61. The dividend is expected to grow at 23.28% for five years and then grow at 3.66% forever. What is the value of the stock?

C.)

Caspian Sea Drinks needs to raise $58.00 million by issuing additional shares of stock. If the market estimates CSD will pay a dividend of $1.31 next year, which will grow at 3.84% forever and the cost of equity to be 13.10%, then how many shares of stock must CSD sell?

D.)

Suppose the risk-free rate is 2.75% and an analyst assumes a market risk premium of 5.51%. Firm A just paid a dividend of $1.25 per share. The analyst estimates the of Firm A to be 1.20 and estimates the dividend growth rate to be 4.74% forever. Firm A has 294.00 million shares outstanding. Firm B just paid a dividend of $1.66 per share. The analyst estimates the of Firm B to be 0.87 and believes that dividends will grow at 2.37% forever. Firm B has 199.00 million shares outstanding. What is the value of Firm A?

E.)

Suppose the risk-free rate is 1.50% and an analyst assumes a market risk premium of 5.96%. Firm A just paid a dividend of $1.20 per share. The analyst estimates the of Firm A to be 1.30 and estimates the dividend growth rate to be 4.18% forever. Firm A has 300.00 million shares outstanding. Firm B just paid a dividend of $1.61 per share. The analyst estimates the of Firm B to be 0.88 and believes that dividends will grow at 2.65% forever. Firm B has 197.00 million shares outstanding. What is the value of Firm B?