Best Buy has just paid a dividend of $4 per share (this dividend is already paid, therefore it is not included in the current price).The company's dividend is estimated to grow at a rate of 35% in year 1 and 20% in year 2. The dividend is then expected to grow at a constant rate of 9.7% thereafter. The company's opportunity cost of capital is 12%; what is the current value of Best Buy stock?

Suppose Best Buy is forecasting a constant annual decline in its dividends of 4% (i.e. the constant growth rate is -4%). What price would you expect to pay for the stock with a 10.2% required rate of return and an annual dividend of $3, which will be paid next year?

General Foods is forecasted to have a beta (measure of market risk) of 0.5 next year. The risk-free rate over the next year is expected to be 1%. The return on the market is expected to be 8%. What is the required return of General Foods based on the firm's market risk? Calculate the return using the capital asset pricing model

Suppose General Foods has decided to enter the soda business and they will require additional capital. Management will finance the project by borrowing $100 million and by halting dividend payments. Management forecasts that free cash flow for the next two years will be -$50, and $35 million. After year 2, the cash flows will grow at a rate of 4%. The current WACC for General foods is 10.2%. What is the firm's price per share, given there are 50 million shares outstanding?

formula or excel is ok