Question
Help. QUESTION 1 A stock is expected to pay $6.5 per share every year indefinitely. The current price of the stock is $650. The equity
Help.
QUESTION 1
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"A stock is expected to pay $6.5 per share every year indefinitely. The current price of the stock is $650. The equity cost of capital for the company is 19%. What price would an investor be expected to pay per share 3 years into the future? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer."
QUESTION 2
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"Company Z is expected to pay a $5.9 dividend at the end of this year. You expect Company Z's dividend to grow by 4.5% per year forever. Company Z's equity cost of capital is 20% What is the value of a share of Company Z's stock? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer."
QUESTION 3
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"Company E has a dividend yield of 7.5% and a cost of equity capital of 10%. Company E's dividends are expected to grow at a constant rate indefinitely. What is the growth rate of the dividends of Company E's stock? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer."
QUESTION 4
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"Company F will have earnings per share of $4 this year and expect that they will pay out $3.5 of these earnings to shareholders in the form of a dividend. Company F's return on new investments is 10% and their equity cost of capital is 7.5%. The expected growth rate for Company F's dividends is ________. Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer."
QUESTION 5
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"Company F will have earnings per share of $4 this year and expect that they will pay out $3.5 of these earnings to shareholders in the form of a dividend. Company F's return on new investments is 10% and their equity cost of capital is 7.5%. The value of Company F's stock is ________. Note: Express your answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer."
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