Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 13 1 pts SanData Inc. recently paid its annual dividend of $2.61. Dividends have consistently grown at a rate of 8%. You estimate that

image text in transcribed

Question 13 1 pts SanData Inc. recently paid its annual dividend of $2.61. Dividends have consistently grown at a rate of 8%. You estimate that the stock has a required return of 14%. What is the intrinsic value of this stock? DO NOT ENTER THE $ SIGN. ALSO, ENTER YOUR ANSWER AS A POSITIVE NUMBER. SET YOUR CALCULATOR TO 4 DECIMAL PLACES AND ROUND TO TWO DECIMAL PLACES AT THE END, i.e. IF YOUR ANSWER IS 33.4348 ENTER IT AS 33.48 ONLY 24.75 Question 14 1 pts The preferred stock of Dallas Platinum Exchange has a par value of $75 and pays a 5% dividend rate per year. You calculated a beta of 0.88 for the stock. The risk-free rate is 2.84% and the market return is 9.2%. Assuming that CAPM holds, what is the intrinsic value of this preferred stock? DO NOT ENTER THE $ SIGN. ALSO, ENTER YOUR ANSWER AS A POSITIVE NUMBER. SET YOUR CALCULATOR TO 4 DECIMAL PLACES AND ROUND TO TWO DECIMAL PLACES AT THE END, i.e. IF YOUR ANSWER IS 33.4348 ENTER IT AS 33.48 ONLY 44.45

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions