Question
Q1) Ramsay Health Care Ltd has recently paid a dividend of $6 and the dividend payments are expected to grow at a constant rate of
Q1) Ramsay Health Care Ltd has recently paid a dividend of $6 and the dividend payments are expected to grow at a constant rate of 11% per year for the next 12 years. The required rate of return for the same class of shares is 15%. What should be the price of the share in 12 years?
Q2) Walmart Ltd has recently paid a dividend of $4 and the dividend payments are expected to grow at a constant rate of 8% per year for the next 5 years. The required rate of return for the same class of shares is 16%. What is the market value of Walmart Ltd.'s share?
Q3) Suppose that the current cash dividend of PayPal Ltd is $0.70. Financial analysts expect the dividends to grow at a constant rate of 5 per cent per year, and investors require a 12 per cent return on this class of shares. What should be the current share price of PayPal Ltd?
Q4) Suppose that the current cash dividend of XYZ Ltd is $0.80. Financial analysts expect the dividends to grow at a constant rate of 9 per cent per year, and investors require a 10 per cent return on this class of shares. What should XYZ Ltd's price be in 15 years?
Q5) A 7 year bond with a face value of $100,000 and having a coupon rate of 7%. Coupon payments are made semi-annually. What's the present value of the first coupon payment?
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