Question
PLEASE I NEED IT ASAP 1) Earnings per common share of ABC Industries for the current year are expected to be $5.00 and to grow
PLEASE I NEED IT ASAP
1)
Earnings per common share of ABC Industries for the current year are expected to be $5.00 and to grow 8% per year over the next 4 years. At the end of the 5 years, earnings growth rate is expected to fall to 6.5% and continue at that rate for the foreseeable future. ABCs dividend payout ratio is 45%. If the expected return on ABC's common shares is 18%, what is the terminal (horizon) value of the stock at the beginning of year 6?
Multiple Choice
$24.30
$30.20
$30.61
$28.35
$26.25
2)
Dreamers Inc. generated $10 per share over the last year. They also paid $3 dividend per share to their shareholders. If the ROE of the company is 15%, what is the expected dividend growth rate?
Multiple Choice
12.50%
30%
10.50%
5%
15%
3)You just borrowed $10,000. You're planning to pay $500 per month. If the annual percentage rate is 10.50%, how long does it take to pay off the loan?
Multiple Choice
26 years.
22 years.
20 years.
Further information is required.
24 years.
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