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Q1) Suppose Nabisco Corporation just issued a dividend of $2.52 per share yesterday. Subsequent dividends will grow at a constant rate of 7.17% indefinitely. If

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Q1) Suppose Nabisco Corporation just issued a dividend of $2.52 per share yesterday. Subsequent dividends will grow at a constant rate of 7.17% indefinitely. If the required rate of return for this stock is 13.30%, what is the value of a share of common stock today? (2 points) (2) What is the value of a share of preferred stock that promises to pay $2.05 every year,indefinitely, if you have a required rate of return of 8.12%? (2 points) (3) The current price of Janco stock is $8.77. Dividends are expected to grow at 4.36% indefinitely and the most recent dividend paid yesterday was $3.80. Compute the following for Janco stock: a) The required rate of return: (1.5 points) b) The dividend yield: (1.0 points) c) Capital gains yield: (1.0 points) Q4) Magnetic Corporation expects dividends to grow at a rate of 12.66% for the next two years. After two years, dividends are expected to grow at a constant rate of 6.13%, indefinitely. Magnetic's required rate of return is 13.02% and they paid a $1.79 dividend today. Compute the following for Magnetic Corporation's common stock: a) Dividend at end of year 1: (0.5 points) b) Dividend at end of year 2 : (0.5 points) c) Dividend at end of year 3 : (0.5 points) d) Price of stock at end of year 2 : (1 point) e) Price of stock today: (1 point)

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