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dicate the answer choice that best completes the statement or answers the question, questions are weighted equally. Clearly fill in the appropriate bubble on the
dicate the answer choice that best completes the statement or answers the question, questions are weighted equally. Clearly fill in the appropriate bubble on the scuntran A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of Cum is = 10.5%, and the expected constant growth rate is g- 63%. What is the stock's rrent price? a. $22.32 b. $21.43 c. $14.46 d. 317.86 If D. = 52.25, (which is constant) = 3.5%, and Po - S42, then what is the stock's expected dividend vield for the coming year? a. 6,93% b. 5.21% c. 5.54% d. 5.82% a 3. Gray Manufacturing is expected to pay a dividend of S1.25 per share at the end of the year (D = $1.25). The stock sells for $24.50 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate, g? a. 6.53% b. 5.40% c. 4.32% d. 5.94% 4. Misra Inc. forecasts a free cash flow of $20 million in Year 3. i.c., att = 3, and it expects FCF to grow at a constant rate of 5.5% thereafter. If the weighted average cost of capital (WACC) is 10.0%, then what is the horizon, or continuing, value in millions at t= 3? FCF (1 +9) Hint: Horizon value (at t = 3) = WACC -9 a. $492 b. $441 c. $469 d. $506 See Next page
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