hello I need a tutor to help me solve these problems 1 - 6 , I am a little confused on how to solve them .. please provide step by step on how to solve each problems. Thanks.....
1- Assume that Ritchie Industries is expected to have a dividend growth rate over the foreseeable future of 8% a year and that the required rate of return for this stock is 13%. the current dividend being paid is $2.25. What is the estimated value of the stock? 2- Jay technology is currently selling for $45 a share with an expected dividend in the coming year of $2 per share. if the expected growth rate in dividends is 9% What is the required rate of return for Jay ? 3- Duke's LongHorn Steaks is currently selling for $50 per share and pays $3 in dividends. investors require a 15% return on this stock. What is the expected growth rate of the dividends? 4- a. The current risk-free rate (RF) is 10% and the expected return on the market for the coming year is 15%. Calculate the required rate of return for (1) Stock A, with a beta of 1.0; (2) Stock B, with a beta of 1.7; & (3) stock C, with a beta of 0.8 b. How would you answers change if RF in part (a) where to increase to 12% with the other variables unchanged? c. How would your answers change if the expected return on the market changed to 17% with the other variables unchanged? 5- The Parker dental supply company sells at $30 per share and it's latest 12 months earnings are $4 per share with a dividend payout of 50% . a. What is Parker's current P/E ratio ? b. If an investor expects earnings to grow by 10% a year what is the projected price for the next year if the P/E Ratio remains un-changed ? c. An investor analyzes the data and estimates that the firm payout ratio will remain the same. assume that the expected growth rate of dividends is 10% and the investor has the required rate of return of 16%, would this stock be a good buy why or why not ? d. if interest rates are expected to decline, what is the likely effect on Parker's P/E ratio? 6- Mccalla Food Distributors is currently paying a dividend of $1.80. this dividend is expected to grow at a rate of 16 % in the future. Mccalla is 10% less risky than the market as a whole. the market risk premium is 7% and the risk-free rate is 5%. What is the estimated price of the stock