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Hello, I need help with the attached homework questions. Any help would be appreciated. Thank you Christina Question 1 1. ABC Enterprises' stock is expected
Hello,
I need help with the attached homework questions. Any help would be appreciated.
Thank you
Christina
Question 1 1. ABC Enterprises' stock is expected to pay a dividend of $1.6 per share. The dividend is projected to increase at a constant rate of 6.7% per year. The required rate of return on the stock is 12.5%. What is the stock's expected price 3 years from today (i.e. solve for P3)? Question 2 1. ABC Inc., is expected to pay an annual dividend of $3.5 per share next year. The required return is 13.6 percent and the growth rate is 7.7 percent. What is the expected value of this stock five years from now? Question 3 1. If D1 = $3.71 and P0 = $55.05, what is the dividend yield? Question 4 1. ABC's stock has a required rate of return of 13%, and it sells for $51 per share. The dividend is expected to grow at a constant rate of 4.8% per year. What is the expected year-end dividend, D1? Question 5 1. ABC is expected to pay a dividend of $1.7 per share at the end of the year. The stock sells for $137 per share, and its required rate of return is 15.4%. The dividend is expected to grow at some constant rate, g, forever. What is the growth rate (i.e. solve for g)? Question 6 1. A stock is expected to pay a dividend of $1.3 at the end of the year. The required rate of return is rs = 12.1%, and the expected constant growth rate is g = 6.3%. What is the stock's current price? Question 7 1. ABC's last dividend paid was $2.3, its required return is 12.2%, its growth rate is 4%, and its growth rate is expected to be constant in the future. What is Sorenson's expected stock price in 7 years, i.e., what is P 7? Question 8 1. The common stock of Wetmore Industries is valued at $36.5 a share. The company increases their dividend by 3.6 percent annually and expects their next dividend to be $1.1. What is the required rate of return on this stock? That is, solve for r. Question 9 1. If D0 = $4.3, g = 4.5%, and P0 = $70.3, what is the required rate of return on the stock? That is, solve for r. Question 10 1. ABC just paid a dividend of D0 = $4.7. Analysts expect the company's dividend to grow by 31% this year, by 25% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this stock is 16%. What is the best estimate of the stock's current market value? Question 11 1. A stock just paid a dividend of D0 = $1.1. The required rate of return is rs = 11.2%, and the constant growth rate is g = 7.7%. What is the current stock price? Question 12 1. ABC's last dividend was $3.2. The dividend growth rate is expected to be constant at 23% for 3 years, after which dividends are expected to grow at a rate of 5% forever. If the firm's required return (rs) is 13%, what is its current stock price (i.e. solve for Po)? Question 13 1. ABC Company's last dividend was $0.3. The dividend growth rate is expected to be constant at 28% for 2 years, after which dividends are expected to grow at a rate of 6% forever. The firm's required return (rs) is 17%. What is its current stock price (i.e. solve for Po)? Question 14 1. If D1 = $3, g (which is constant) = 7.6%, and P0 = $69.6, what is the required rate of return on the stock? That is, solve for r. Question 15 1. ABC Enterprises' stock is currently selling for $75.3 per share. The dividend is projected to increase at a constant rate of 6.4% per year. The required rate of return on the stock is 12%. What is the stock's expected price 5 years from today (i.e. solve for P5)? Question 16 1. The common stock of ABC Industries is valued at $55.1 a share. The company increases their dividend by 3.7 percent annually and expects their next dividend to be $1.7. What is the required rate of return on this stock? That is, solve for rStep by Step Solution
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