Question
PLEASE TYPE IT OUT NO HAND WRITTEN NOTES. PLEASE EXPLAIN STEP BY STEP ON HOW TO DO THIS ON A FIN CALCULATOR 1A: Sky High
PLEASE TYPE IT OUT NO HAND WRITTEN NOTES. PLEASE EXPLAIN STEP BY STEP ON HOW TO DO THIS ON A FIN CALCULATOR
1A: Sky High Co. just paid a dividend of $1.6 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year indefinitely. If investors require an 15.0 percent return on Sky High Co. stock, the current price is $ _________ . Round it to two decimal places, and do not include the $ sign, e.g., 23.56.
1B: Sky High Co. just paid a dividend of $4.5 per share on its stock (D0). The dividends are expected to grow at a constant rate of 3 percent per year indefinitely. If investors require an 8.9 percent return on Sky High Co. stock, the stock price in 8 years should be $ _________ . Round it to two decimal places, and do not include the $ sign, e.g., 23.56.
1C: Pine Grove, Inc., is a thriving young company and it expects no dividends over the next 3 years because the company needs to reinvest its earnings to fund its various projects. The company will pay a $6.2 per share dividend in 4 years and will increase the dividend by 8 percent per year thereafter. If the required return on this stock is 14.0 percent, the current share price should be $_______. (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16))
1D: Wonder Trees Inc. expects to pay the next dividend payment of $4.2 per share (D1). The company is expected to maintain a 5 percent growth rate forever. If the company stock currently sells for $39 per share, the required return should be ______ percent. Express in percentage without the % sign, and round it to two decimal places, e.g., 13.45.
1E: Rascal, Inc., has an issue of preferred stock outstanding that pays a $7.4 dividend every year in perpetuity. If this issue currently sells for $90.14 per share, the required return is ___________ percent. Express in percentage without the % sign, and round it to two decimal places, e.g., 13.45.
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