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QUESTION 1 Copycat Co. is selling at $34 per share. The most recent annual dividend paid was $1.8. Using the Gordon Growth model, if the
QUESTION 1 Copycat Co. is selling at $34 per share. The most recent annual dividend paid was $1.8. Using the Gordon Growth model, if the market requires a return of 8%, what is the expected dividend growth rate for Copycat? QUESTION 2 Huskie Motor's just paid an annual dividend of $1 per share. Management has promised shareholders to increase dividends a constant rate of 2%. If the required return is 6%, what is the current price per share? QUESTION 3 Macro Systems just paid an annual dividend of $0.48 per share. Its dividend is expected to double each year for the next three years (D1 through D3), after which it will grow at a more modest pace of 2% per year. If the required return is 6%, what is the current price? QUESTION 4 Analysts are projecting that Vista Inc. will have earnings per share of $3.1. If the average industry ratio is about 20, what is the current price of Vista? QUESTION 5 Compute the price of a share of stock that pays a $16 per year dividend and that you expect to be able to sell in one year for $40, assuming you require a 47% return
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