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Please show step by step on how to solve it. Turn in one sheet per team. Each team member must sign the back (legibly) to

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Turn in one sheet per team. Each team member must sign the back (legibly) to receive credit. 1. In one year, Campbell Corp. will pay a common stock dividend of $4.75. You predict that you will be able to sell your Campbell stock for $68 per share after 1 year. If you require a rate of return of 11 percent on Campbell stock, what is the intrinsic value of the stock? 72.1S a) $61.26 c) $72.75 65.54 e) $80.23 b) $66.01 Talleyho Saddle Company common stock is currently selling for $39. Industry analysts are forecasting a dividend of$1.75 for next year and a growth rate of9.5 percent per year for the foreseeable future. What is the expected annual rate of return for the stock? 2. a) 4.49% 0.1 3.99% c) 13.77% d) 18.42% e) 14.41% 3. Final Four Corporation preferred stock is selling for $25 per share. Ifthe required return is 1 2%, what will the dividend be two years from now? a) $2.39 b) $2.50 c) $3.00 d) $3.30 e) $3.76 Alabaster Corporation's 9% coupon bonds are currently selling for $1,250. These bonds have a par value of $1,000, pay interest semi-annually, and mature in 12 years. What is the annual yield to maturity for an Alabaster bond? 4 2 02% e) 4.24% a) 6,04% 2 6.85% c) 9.00% Sports Equipment Inc. is expected to enjoy a very rapid growth rate in dividends of30% a year for the next three years. After that, the stock is expected to grow at a stable 7% a year. The company recently paid a $2.50 dividend. The required rate ofreturn is 21%. What is the intrinsic value ofa share ofSEI stock? 5

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