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Please answer all questions Please answer all questions 4. You are considering an investment in Keller Corp's stock, which is expected to pay a dividend
Please answer all questions
Please answer all questions
4. You are considering an investment in Keller Corp's stock, which is expected to pay a dividend of $2 a share at the end of the year and has a beta of 12.70. The risk-free rate is 17.40%, and the market risk premium is 6%. Keller currently sells for $143 a share, and its dividend is expected to grow at some constant rate g. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years? (1 point) 5. Martell Mining Company's ore reserves are being depleted, so its sales are falling. Also, because its pit is getting deeper each year, its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 5% per year. If current dividend is $5 and required rate of return 26.80%, what is the value of Martell Mining's stock? (1 point) 1. Harrison Clothiers' stock currently sells for $138 a share. It just paid a dividend of Si a share. The dividend is expected to grow at a constant rate of 6% a year. What is the required rate of return? What stock price is expected 1 year from now? (1 point) 2. Warr Corporation just paid a dividend of $1.5 a share. The dividend is expected to grow 18.80% a year for the next 3 years and then at 5% a year thereafter. What is the expected dividend per share for each of the next 4 years? (1 point) 3. Fee Founders has perpetual preferred stock outstanding that sells for $178 a share and pays a dividend of $5 at the end of each year. What is the required rate of return? (1 point) 1 Page Step by Step Solution
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