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Basebeart, Inc. expects its current annual $2.50 per share common stock dividend to remain the same for the foreseeable future. Calculate the value of the

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Basebeart, Inc. expects its current annual $2.50 per share common stock dividend to remain the same for the foreseeable future. Calculate the value of the stock to an 4. investor with a required return of 12%. 5. Kilsheimer Company just paid a dividend of $5 per share. Dividends are expected to grow at a constant rate of 7% per year. What is the value of the stock to you if the required return is 16%? If the stock is trading for $45 in the market, would you want to buy this stock? 6. Johnstown Supply Corporation stock is currently selling for $58.00. It is expected to pay a dividend of $5.00 next year. Dividends are expected to grow at a constant rate of 7.5% indefinitely. Compute the required rate of return on Johnstown Supply Corporation stock. What is the dividend yield? What is the capital gains yield? 7. Philadelphia SteelWorks, Inc. has had steady earnings for the last several years and foresees this happening in the near future. However, a new technology that is in the works allows PSW to forecast growth in the next few years. Specifically, the dividends PSW expects to pay in the next three years is $3 per share. Starting in year 4, the company expects to increase this dividend 6% per year indefinitely. What is the stock price of PSW if investors during this time period require a 10% return on their investment? Show all work

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