Please help with answers to these questions thank you
QUESTIDN 9.1 14 giant": A steel: is expected to pa).r a year-end dividend at $2.01!} per share. The dividend iseapeetedtegmw ataeenstantrateefa, andthestnekhas a requiIedretInn efgt'. 1|n-lIFhatisthe expechedprieeet'tlie steekvexeals'unim A) $50.51] a] 553m C} 512.19 13) sssss QUESTIDN 9.2 14 int": W'hieh ut'the fellas-ling statements is sunset? at] The eenstant growth model is after: appmpIiate t'eI evaluating start-up eempanies that de- net have a stable hister ef' grewth but are expected te reaeh stable gmwth 1Within me next few yeaIs. B] Ifa stuckhas arequiredrate eftetumn=12$a andits dividend iseapeetedtegmw at a new rate :11" 5%, this implies that the steek's dividend yield is also 5%- C] The steel: 1iraluatzilzlnn nineulzllelI Pa = Dr, - g], ean he usedte value lmswhese dividends are expected te decline at s eenstant rate, i.e.I te grew at a negative rate. D] The price et'a steel: is we present value uf'all expected ituIe dividends, diseeimted at the dividend grewth rate. QUESTIDN 9.! l4 Eintsl: Ptefenedsteel: is a hybiidna suit u-t'eress between a eemmen steel: and a hend--in the sense that it pays dividends that nernially inexease ann1.Iall'_I.-r like a steel: but its payments are CDIIIIEE'l'IlllF guaranteed like interest on a hand. A] True B] False W SteeksA and E havetlie same price snderein equilibrium, but Stock A has the higher required rate cfretum. Which ut'the fullewing statements is CDRRECT'? A] If Stock A has a lewer dividend yield ies Steel: B, its expected capital gains yield must be higher than Stuck B's B] Etc-ck B must have a higher dividend yield than Stuck A. C] Stuck must have a higher dividend yield than Stuck E. D} If Stuck A lies a higher dividend yield than Steel-i E, its expected capital gains yield must he lewer than Stuck E's- Il'ESTIN 9'5 [4 Eintsl: it share efeemc-nstcckjustpeid a dividend ct'Sl. I't'the expected lung-run growth rate furthis stack is 5.41%, sndit'imrestui's' requiredrste cf'retum is 11.4%, what is the stack price? A] $16.23 B} 516.71] C] 51113 D] 5115? QUESTIDN ELIE 15 urine}: If D] = SLED, g [which is constant] = 15.5%, and Pa = $515, What is the steek's expected capital gains yield x The coming year? A] 6.50% B] 15.33% E] 11TH: D] 152% WFhmMieexpeetedtepeyeSEjdideudetyeeIenithe didendie expectedtu grew at e mmtentmteuf'i5n EFEEI, eudthe eauquIun steel: eminently sells fur $52.50 a share. The before-tax met ufdeht is 150%, end the tax. rate is 45%. The target eepital etruetlu'e eureeiets Cit-15% debt and 55% eummun eqmty. What is the empany'e WAGE ifell the equity used is rm retained eaming A] 1015-5 B} 135% C] 1.151% D] 1.93% W A mummy has detenIIiuedthat its uptimel capital structure consists Df 40% debt and 50% equity. Assume the rm will uut have eueugh retained earnings tn fLmdthe equitypurtiunuf'ite capital budget. Ale, 333111113 the rm eeeuurdze 551' utetiun mete by adjusting the met of capital. Given the felluwing intie:I1:I:L..11'iu|:n'.|1 ealmdate the lm's weighted average eauet uf' capital [WAGE]. Id: 8% DFSEIID Tex rate = 40% Pa = 525 Growth = [IE-'3 Fluteun wet on eummun equityr = 15% A] 5.42% E] 15m C} 3.49% D] 9.05% QUESTIDN 1113 [SIB-=15 Hint": Ruhinsun Cump'y has a marginal tax. rate Df'lW-u. Thenneantaise debt ata li'interesttate andie lastdividendpaidhythermwas 5t} Ell} Ruhinsu-n's eureruun stuck is selling fur $3. 59 pet share,and its expected gruwth rate in earning and diwdeuds 1s 5%. If Ruhinsun lanes newr eelrunu-n stuck, the utatiun east incurred will he 10%. The rm plans to naneial all capital expenditures with 30% debt and TIE-'3 equity. 1} What is Ruhinsun's east ufretained earnings it'it eanuse retained earnings ratherthan issue new eumruun stuck? A] 16.00% siiasns silvers niisssa 2] 1What is the nest uf' eurumuu enquitj.r raised by seing new stuck? A} lJl-'i-t Biissns silvers niisssa 3] 1What is the nn's WAGE it' the nn has sufeieut retained earnings to fund the equity pmun ut'its capital budget? A] 13.36% B} 14.21% ciissws niiauaa
