Question
Please fast and show your work for support 1. Cole Pharmaceuticals is currently paying a dividend of $1.4 per share, which is not expected to
Please fast and show your work for support
1. Cole Pharmaceuticals is currently paying a dividend of $1.4 per share, which is not expected to change. Investors require a rate of return of 0.17 percent to invest in a stock with the riskiness of Cole. Calculate the intrinsic value of the stock.
2. Baddour Legal Services is currently paying a dividend of $1.34 per share, which is expected to grow at a constant rate of 0.07 percent per year. Investors require a rate of return of 0.11 percent. Phil Baddour, CEO, has asked you to calculate the estimated value of his company.
3. Bibbins Software Company is currently selling for $58 per share and is expected to pay a dividend of $1.91. The expected growth rate in dividends is 0.06 percent for the foreseeable future. Calculate the expected rate of return for this stock.
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