Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please explain answers. I learn a lot by following the work. Thank you!! #1 The risk-free rate is 3.50% and the market risk premium is
Please explain answers. I learn a lot by following the work. Thank you!!
#1 The risk-free rate is 3.50% and the market risk premium is 6.08%. A stock with a of 1.20 just paid a dividend of $2.33. The dividend is expected to grow at 24.32% for three years and then grow at 3.33% forever. What is the value of the stock? Submit Answer format: Currency: Round to: 2 decimal places. #2 The risk-free rate is 1.43% and the market risk premium is 9.38%. A stock with a of 0.91 just paid a dividend of $1.14. The dividend is expected to grow at 20.76% for five years and then grow at 3.26% forever. What is the value of the stock? Submit Answer format: Currency: Round to: 2 decimal places. #3 Caspian Sea Drinks needs to raise $46.00 million by issuing additional shares of stock. If the market estimates CSD will pay a dividend of $2.58 next year, which will grow at 4.76% forever and the cost of equity to be 12.04%, then how many shares of stock must CSD sell? A Submit Answer format: Number: Round to: O decimal places Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started