QUESTION 1 Company A has a current stock price of $100 and is expected to pay a $5 dividend in one year. The equity cost of capital is 7.5%. What price would its stock be expected to sell for immediately after it pays the dividend? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer." 10 points Save Answer QUESTION 2 "Company B is expected to pay dividends of S1 every 6 months for the next 5 years. If the current price of Company B stock is 518. and Company's equity cost of capital is 10%. What price would you expect the stock to sell for at the end of 5 years? Note: Express your answers in strictly numerical terms. For example, if the answer is $500. enter 500 as an answer." 10 points Save Answer QUESTION 3 "Company C pays a dividend of 53 per share and is expected to pay this amount indefinitely. The equity cost of capital is 1596. What is the price of the stock? Note: Express your answers in strictly numerical terms. For example, if the answer is 5500, enter 500 as an answer." 10 points Save Answer QUESTION 4 "A stock is bought for $50 and sold for $59 1 year later Immediately after it has paid a dividend of $2. What is the capital gain rate for this transaction? Note: Express your answers in strictly numerical terms. For example, if the answer is 596, enter 0.05 as an answer" 10 points Save Answer QUESTIONS "Company D is expected to pay a dividend of 3 once a year. It is expected to sell for $50 1 year from today. The equity cost of capital is 20%. What is the expected capital gain rate from the sale of this stock 1 year from today? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer." QUESTION 6 "A stock is expected to pay $6 per share every year indefinitely. The current price of the stock is $600. The equity cost of capital for the company is 15%. What price would an Investor be expected to pay per share 3 years into the future? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer. 10 points Save Answer QUESTION 7 "Company Z is expected to pay a 35 dividend at the end of this year. You expect Company Z's dividend to grow by 4.5% per year forever. Company Zs equity cost of capital is 20% What is the value of a share of Company Z's stock? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer 10 points Save Answer QUESTION 8 Company E has a dividend yield of 5% and a cost of equity capital of 10%. Company Es dividends are expected to grow at a constant tate indefinitely. What is the growth rate of the dividends of Company Es stock? Note: Express your answers in strictly numerical terms. For example of the answer is 54. enter 0.05 as an answer N 10 points Save Answer QUESTION 9 "Company Fwill have earnings per share of $4 this year and expect that they will pay out $3 of these earnings to shareholders in the form of a dividend. Company is return on new Investments is 10% and their equity cost of capital is 79. The expected growth rate for Company F's dividends is Note: Express your answers in strictly numerical terms. For example, if the answer is 59. enter 0.05 as an answer." 10 points Save Answer QUESTION 10 "Company F will have earnings per share of $4 this year and expect that they will pay out $3 of these earnings to shareholders in the form of a dividend. Company is return on new Investments is 10% and their equity cost of capital is 7. The value of Company is stock is Note: Express your answers in strictly numerical terms. For example, if the answer is 5500, enter 500 as an answer 10 points Save
