Question $1$

Ally Financial stock has a Beta of $0\mathrm{.}5.$ If the expected market return is $9\mathrm{.}9\%$ and the risk free rate is $1\mathrm{.}3\%,$ what is the expected return of Ally Financial stock?

Question $2$

Apple issued a dividend of $$2\mathrm{.}59$ this year, and a dividend of $$2\mathrm{.}35$ last year. What is apple's dividend growth rate?

Please give answers to $2$ decimal places as a percentage $(9\mathrm{.}99\%).$

Question $3$

Apple has a current dividend of $$2\mathrm{.}42$ and a dividend growth rate of $5\mathrm{.}6\%.$ If the CAPM gives the expected return on apple stock of $6\mathrm{.}7\%$ what should the stock price be according to the dividend discount formula?

Question $4$

Apple has a current dividend of $$2\mathrm{.}47$ and a dividend growth rate of $4\mathrm{.}6\%.$ If the CAPM gives the expected return on apple stock of $6\mathrm{.}1\%$ what should the stock price be in $47$ years according to the dividend discount model?

Question $5$

If a stock has a current dividend of $$2\mathrm{.}5,$ a dividend growth rate of $3\mathrm{.}3\%$ and a stock price of $$62\mathrm{.}64$ what is the Capital gains yield of the stock?

Question $6$

$1$

Point

If a stock has a current dividend of $$2,$ a dividend growth rate of $4\mathrm{.}5\%$ and a stock price of $$62\mathrm{.}11$ what is the dividend yield of the stock?

Question $7$

If a stock has a current dividend of $$2\mathrm{.}94,$ a dividend growth rate of $4\mathrm{.}2\%$ and a stock price of $$61\mathrm{.}54$ what is the total return of the stock?

Question $8$

Bank of America has a preferred stock dividend of $$4\mathrm{.}67.$ The stock is trading for $$84\mathrm{.}95.$ What is the expected return of the preferred stock?

Question $9$

A company had free cash flows of $$574$ million last year. Free cash flows are expected to grow at $2\mathrm{.}3\%$ per year. The WACC for the firm is $9\mathrm{.}1\%.$ They currently have $$2\mathrm{.}3$ billion in debt outstanding, and have $144$ million common stock outstanding. The company does not have any preferred stock.

What is the estimate of the stock price based on the firm valuation model?

Question $10$

A company had free cash flows of $$804$ million last year. Free cash flows are expected to grow at $3\mathrm{.}3\%$ per year. The WACC for the firm is $8\mathrm{.}7\%.$ They currently have $$6\mathrm{.}1$ billion in debt outstanding, and have $234$ million common stock outstanding. The company has $87$ million preferred stock outstanding, that currently trade at $$47.$

What is the estimate of the stock price based on the firm valuation model?