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all seperate questions Problem 8-3 Fred Tibbits has made a detailed study of the denim clothing industry. He's particularly interested in a company called Denhart

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all seperate questions

Problem 8-3 Fred Tibbits has made a detailed study of the denim clothing industry. He's particularly interested in a company called Denhart Fashions that makes stylish denim apparel for children and teenagers. Fred has done a forecast of Denhart's earnings and looked at its dividend payment record. He's come to the conclusion that the firm vull pay a dividend of $5.00 for the next two years followed by a year of $7.00. Fred's investment plan is to buy Denhart now, hold it for three years, and then sell. He thinks the price will be about 576.00 when he sells. What is the most Fred should be willing to pay for a share of Denhart if he can earn 13% on investments of similar risk? Round PVF values in intermediate calcuations to four decimal places Round the answer to two decimal places. Do not round intermediate calculations, s Problem 8-6 The Pancake Corporation recently paid a $2.90 dividend and is expected to grow at 4.5% forever. Investors generally require an expected return of at least 8% before they'll buy stocks Similar to those of Pancake a. What is Pancake's intrinsic value? Round the answer to two decimal places. $ b. Is it a bargain if it's selling at $77 a share? (Assume that a share is worth buying when its estimated value is greater or equal to 120% of the market price.) No Problem 8-18 Fox Woodworking Inc. issued preferred shares at a face value of $51 to yield 11% 10 years ago. The shares are currently selling at $61. What return are they earning for investors who buy them today? Round the answer to two decimal places % Problem 891 Paul Dargis has analyzed five stocks and estimated the dividends they will pay next year as well as their prices at the end of the year. His projections are shown below. Stock Projected Stock Current Price Projected Dividend Price A $37.00 $1.45 $40.00 B 24:50 0.80 26.50 58.00 2.00 63.40 D 74.35 None 82.00 E 14.00 3.10 65.00 Compute the dividend yield, capital gain yield, and total one year return implied by Paul's estimates for each stock. Do not round intermediate calculations. Round the answers to two decimal places. Use a minus sign, to indicated negative answers. If an answer is zero, enter 0 Stock C Stock A Stock B Stock D Stock E % % Dividend Yield: 96 940 % % % Capital Gains Yield: 96 % Total Yield: % %

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