Q1. Steady Eddie Utility, Inc.'s stock currently sells for $40.00 per share.The stock's dividend is projected to increase at a constant rate of 5% per year.The required rate of return on the stock, rs, is 16.50%.What is Steady Eddie Utilities' expected price 3 years from now?Enter your answer rounded to two decimal places.Do not enter $ or comma in the answer box.For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.

Q2.Carter's preferred stock pays a dividend of $1.75 per quarter.If the price of the stock is $65.00, what is its nominal (not effective) annual expected rate of return?Enter your answer rounded to two decimal places.Do not enter % in the answer box.For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.

Q3.Mature Conglomerate Corporation (MCC) just paid a dividend of $1.35 per share, and that dividend is expected to grow at a constant rate of 6.00% per year in the future.The company's beta is 1.35, the required return on the market is 12.50%, and the risk-free rate is 4.00%.What is the intrinsic value for MCC's stock?Enter your answer rounded to two decimal places.Do not enter $ or comma in the answer box.For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.

Q4.Restful RVs Inc. (RRV) is presently enjoying relatively high growth because of a surge in the demand for recreational vehicles.Management expects earnings and dividends to grow at a rate of 35% for the next 4 years, after which high gas prices will probably reduce the growth rate in earnings and dividends to zero, i.e., g = 0. The company's last paid dividend, D0, was $1.95. RRV's beta is 1.50, the market risk premium is 4.50%, and the risk-free rate is 3.00%. What is the intrinsic value of RRV's common stock?Enter your answer rounded to two decimal places.Do not enter $ or comma in the answer box.For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.

Q5.Suppose Mature No Dividends Corporation's free cash flow during the just-ended (t = 0) year was $175 million, and FCF is expected to grow at a constant rate of 6% in the future.If the weighted average cost of capital is 17%, what is the firm's value of operations, in millions?Enter your answer rounded to two decimal places.Do not enter $ or comma in the answer box.For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.

Q6.Diversified Industries, Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be -$18 million (negative), but its FCF at t = 2 will be $35 million.After Year 2, FCF is expected to grow at a constant rate of 4% forever.If the weighted average cost of capital is 13%, what is the firm's value of operations, in millions?Enter your answer rounded to two decimal places.Do not enter $ or comma in the answer box.For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.