lease use the following information to annwer the questions concerning stocks that follow ou are considering purchatine shares of a publicaded company. The most recent dividend paid by the company was 9873. The appropriate quity ent of capital for the company is SS. The company es clarently aporiencing dedining growth, and the expected growth rates for the next years are listed below. After this period of dedining rowth portes To comparty experts growth to stabilire at a long growth rate at 2.0 Year 1 2 1 4 Growth Rabo 13.08 12.0 110 9.09 RON art How many years of abnormal growth is this company expecting? Ye it Based on your answer to Port how many dividends will we need to forecast in order to price this company D C all please in the table below with the dividends necessary according to you arewer from Part. Note that presion matters you allowed to ourd, wd at the that may be more in the near artistiche dividends, please calculate the present for only the smal divided in the chart proidet 10 Dividend $10.90 3121 SULAT $14.90 $123 > 10 (cnhthon Pont Value 1 99.51 2 $9.21 4 3814 SAS SI art I Calculate the cash talent of all the conttantly wing dividende. Note that this will not be in Vattimootori, and will not account for the abnormatividends. $105.55 216 2210523 Year Dividend 10 510.99 SL2 31 $11.67 5 S09 $10.30 $123 10 Cash Flow Procent va 59 SI 2 $9:31 3 SHES 5 57.29 art V: Calculate the cash equivalent of all the constantly growing dividends. Note that this will not be in PV ut time terms and will not account for the abnormal dividends Cash Equivalent $165.55 $217.20 21.6 281.2105263 art Vt: What is the present value of the cash equivalent from Dart ? Cash (quivalent art VH: What is the price of the stock of this company today! Price Part Vil: of the company was not expected to experience abnormal growth, but instead was expected to grow at only the long growth rate, what would the price of the stock be in the market today! Pro Partily how muth has the abnormal growth of the firm changed the value of the stock > Price Deference lease use the following information to annwer the questions concerning stocks that follow ou are considering purchatine shares of a publicaded company. The most recent dividend paid by the company was 9873. The appropriate quity ent of capital for the company is SS. The company es clarently aporiencing dedining growth, and the expected growth rates for the next years are listed below. After this period of dedining rowth portes To comparty experts growth to stabilire at a long growth rate at 2.0 Year 1 2 1 4 Growth Rabo 13.08 12.0 110 9.09 RON art How many years of abnormal growth is this company expecting? Ye it Based on your answer to Port how many dividends will we need to forecast in order to price this company D C all please in the table below with the dividends necessary according to you arewer from Part. Note that presion matters you allowed to ourd, wd at the that may be more in the near artistiche dividends, please calculate the present for only the smal divided in the chart proidet 10 Dividend $10.90 3121 SULAT $14.90 $123 > 10 (cnhthon Pont Value 1 99.51 2 $9.21 4 3814 SAS SI art I Calculate the cash talent of all the conttantly wing dividende. Note that this will not be in Vattimootori, and will not account for the abnormatividends. $105.55 216 2210523 Year Dividend 10 510.99 SL2 31 $11.67 5 S09 $10.30 $123 10 Cash Flow Procent va 59 SI 2 $9:31 3 SHES 5 57.29 art V: Calculate the cash equivalent of all the constantly growing dividends. Note that this will not be in PV ut time terms and will not account for the abnormal dividends Cash Equivalent $165.55 $217.20 21.6 281.2105263 art Vt: What is the present value of the cash equivalent from Dart ? Cash (quivalent art VH: What is the price of the stock of this company today! Price Part Vil: of the company was not expected to experience abnormal growth, but instead was expected to grow at only the long growth rate, what would the price of the stock be in the market today! Pro Partily how muth has the abnormal growth of the firm changed the value of the stock > Price Deference
