Question
Please answer all please! 1)Francis Inc.'s stock has a required rate of return of 10%, and it sells for $87.50 per share. The dividend is
Please answer all please!
1)Francis Inc.'s stock has a required rate of return of 10%, and it sells for $87.50 per share. The dividend is expected to grow at a constant rate of 6.00% per year. What is the expected year-end dividend, D1?
2)EDM, Inc. just paid a dividend of $2.35 per share on its stock. The dividends are expected to grow at a constant rate of 4% per year, indefinitely. If investors require a return of 10% on this stock, what is the current price?
3)Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. You have been provided with the following data: rRF = 5.10%; RPM = 5.25%; and b = 0.70. Based on the CAPM approach, what is the cost of equity from retained earnings?
4)Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D1 = $0.60; P0 = $40.00; and g = 8.00% (constant). What is the cost of equity from retained earnings based on the DCF approach?
5)Tresnan Brothers is expected to pay a $1.80 per share dividend at the end of the year (i.e., D1=$1.80). The dividend is expected to grow at a constant rate of 4% a year. The required rate of return on the stock, rs, is 12%. What is the stocks current value per share?
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