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please help need answers and work for Q7,8,9 and Q2 and 3 D) replacement cost 17) A firm is planning on paying its first dividend

please help need answers and work for Q7,8,9 and Q2 and 3 image text in transcribed
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D) replacement cost 17) A firm is planning on paying its first dividend of $2 three years from today. After that, dividends are expected to grow at 6% per year indefinitely. The stock's required return is D1=21.06 14%. What is the intrinsic value of a share today? P0=(1+1,1)32+P12P2 P2=(1+1+AD2(14.05)2.12 A) $25.00 (B) $16.87 C) $19.24 P0=(t+5)2D2 D) $20.99 P0=1.75+20.39=22.14P2P0=1.35+15.69=17.04P10P4elyrelatedtotheintrinsicvalueofa=26.5=(1+14)226.5=20.39=(1.14)426.5=15.69 j8) Everything else equal, which variable is negatively related to the intrinsic value of a company? A) D1 B) D0 P0=(rg)D1 C) g D) k 9) You are considering acquiring a common share of Sahali Shopping Center Corporation that you would like to hold for 1 year. You expect to receive both $2.00 in dividends and $60 from the sale of the share at the end of the year. The maximum price you would pay for a share today is if you wanted to earn a 13% return. A) $53.10 B) $54.87 (C) $53.94 P0=2 D) $71.26 2) You want to earn a return of 10% on each of two stocks, A and B. Each of the stocks is expected to pay a dividend of $4 in the upcoming year. The expected growth rate of dividends is 6% for stock A and 5% for stock B. Using the constant-growth DDM, the intrinsic value of stock A (A) will be higher than the intrinsic value of stock B Ap=(1.46)4=100Ap=(1.5)4=80 B) will be the same as the intrinsic value of stock B C) will be less than the intrinsic value of stock B D) The answer cannot be determined from the information given. 3) Behaviorists point out that even if market prices are , there may be A) distorted; limited arbitrage opportunities B) distorted; fundamental efficiency C) allocationally efficient; limitless arbitrage opportunities D) distorted; allocational efficiency

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