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Please show work using a financial calculator. Please see the attached document 1) Pharsalus Inc. just paid a dividend (i.e., D0) of $ 0.93 per
Please show work using a financial calculator. Please see the attached document
1) Pharsalus Inc. just paid a dividend (i.e., D0) of $ 0.93 per share. This dividend is expected to grow at a rate of 9.0 percent per year forever. The appropriate discount rate for Pharsalus's stock is 10.1 percent. What is the price of the stock? (Round your answer to 2 decimal places and record your answer without dollar sign or commas). 2) Robotic Atlanta Inc. just paid a dividend of $4.00 per share (that is, D0 = 4.00). The dividends of Robotic Atlanta are expected to grow at a rate of 20 percent next year (that is, g1 = .20) and at a rate of 10 percent the following year (that is, g2 = .10). Thereafter (i.e., from year 3 to infinity) the growth rate in dividends is expected to be 5 percent per year. Assuming the required rate of return on Robotic Atlanta stock is 18 percent, compute the current price of the stock. (Round your answer to 2 decimal places and record your answer without dollar sign or commas). 3) If the returns on Stock A are as follows: Year 1 return = 3 %, Year 2 return = 10 %, Year 3 return = -7 %, Year 4 return = 17 %, and Year 5 return = -11 %, what is the average return for Stock A over this 5 year period? (Record your answer as a percent rounded to 1 decimal place. If your answer is negative, place a minus sign before your number with no space between the sign and the number. For example, record negative 14.284% as -14.3)Step by Step Solution
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