Question 6-10 please.

Formatting: All prices to two decimal places (i.e. $XX.XX) All PE Ratios to two decimal places Section One: Easy / Intermediate (10 points each) You are evaluating shares in Honeywell (HON). They just paid an annual dividend of $3.50 per share last year and expect to increase that 5% for next year and every year in the future. If you use a discount rate of 8%, what is the value of the shares? 1 2 You are evaluating shares in General Electric (GE). They just paid an annual dividend of $15.00 per share last year but have cut future dividends to $12.50 per share and do not expect those to grow in the future. If you use a discount rate of 12%, what is the value of the shares? 3 You are evaluating shares in Chevron (CVX). They expect to pay an annual dividend of $8.00 per share next year and expect to increase that by 4% every year. If you use a discount rate of 10%, what is the value of the shares? 4 You are evaluating shares in Ford Motor (F). They expect to pay an annual dividend of $10.50 per share next year and expect to increase that by 2% every year. If you use a discount rate of 10%, what is the value of the shares? 5 You are evaluating shares in Arrow Electronics (ARW), which are currently trading at a price of $75.25. Last year they posted EPS of $3.50 and next year they are expected to post EPS of $3.75. What is the trailing P/E of the stock? 6 You are evaluating shares in Arrow Electronics (ARW), which are currently trading at a price of $75.25. Last year they posted EPS of $3.50 and next year they are expected to post EPS of $3.75. What is the forward P/E of the stock? 7 You are evaluating shares in Duke Energy (DUK) and comparing it to Florida Power & Light (FPL). DUK is trading at $58.50 per share, had EPS last year of $2.65 per share and is expected to have EPS of $2.75 per share this year. FPL is trading at $35.25 per share, had EPS last year of $1.75 per share and is expected to have EPS of $1.80 per share this year. Looking at trailing P/E, which stock appears to be the more expensive? 8 You are evaluating shares in Procter & Gamble (PG) and comparing it to Unilever (UN). PG is trading at $187.50 per share, had EPS last year of $18.75 per share and is expected to have EPS of $19.75 per share this year. UN is trading at $37.50 per share, had EPS last year of $3.75 per share and is expected to have EPS of $3.85 per share this year. Looking at forward P/E, which stock appears to be the more expensive? Section Two: Harder (5 points each) You are evaluating shares in Lyft (LYFT). They currently pay an annual dividend of $10.00 per share this year but expect to 9 increase this payout by 10% next year and the following year. Then, as the company matures, it expects that dividends will only grow by 5% per year thereafter. If you use of discount rate of 20%, what is the value of the shares? 10 You are evaluating shares in Schlumberger (SLB). They currently pay an annual dividend of $5.50 per share this year but expect to increase this payout by 5% next year and the two following years. Then, as the company matures, it expects that dividends will grow by 2% per year thereafter. If you use of discount rate of 12%, what is the value of the shares? 11 You are evaluating shares in Microsoft (MSFT) and comparing it to Alphabet (GOOG). MSFT is trading at $51.00 per share, had EPS last year of $1.95 per share and is expected to have EPS of $2.05 per share this year. GOOG is trading at $120.00 per share, had EPS last year of $5.00 per share and is expected to have EPS of $5.10 per share this year. You believe that GOOG mature and should trade at the same forward P/E as MSFT. Assuming you are right compute GOOGs expected stock price. 12 You are evaluating shares in Telsa (TSLA) and comparing it to General Motors (GM). TSLA is trading at $250.00 per share, had EPS last year of $12.50 per share and is expected to have EPS which is 5% higher this year. GM is trading at $25.00 per share, had EPS last year of $1.50 per share and is expected to have EPS which is 2% higher this year. You believe that TSLA mature and should trade at the same forward P/E as GM. Assuming you are right, compute TSLAs expected stock price. Formatting: All prices to two decimal places (i.e. $XX.XX) All PE Ratios to two decimal places Section One: Easy / Intermediate (10 points each) You are evaluating shares in Honeywell (HON). They just paid an annual dividend of $3.50 per share last year and expect to increase that 5% for next year and every year in the future. If you use a discount rate of 8%, what is the value of the shares? 1 2 You are evaluating shares in General Electric (GE). They just paid an annual dividend of $15.00 per share last year but have cut future dividends to $12.50 per share and do not expect those to grow in the future. If you use a discount rate of 12%, what is the value of the shares? 3 You are evaluating shares in Chevron (CVX). They expect to pay an annual dividend of $8.00 per share next year and expect to increase that by 4% every year. If you use a discount rate of 10%, what is the value of the shares? 4 You are evaluating shares in Ford Motor (F). They expect to pay an annual dividend of $10.50 per share next year and expect to increase that by 2% every year. If you use a discount rate of 10%, what is the value of the shares? 5 You are evaluating shares in Arrow Electronics (ARW), which are currently trading at a price of $75.25. Last year they posted EPS of $3.50 and next year they are expected to post EPS of $3.75. What is the trailing P/E of the stock? 6 You are evaluating shares in Arrow Electronics (ARW), which are currently trading at a price of $75.25. Last year they posted EPS of $3.50 and next year they are expected to post EPS of $3.75. What is the forward P/E of the stock? 7 You are evaluating shares in Duke Energy (DUK) and comparing it to Florida Power & Light (FPL). DUK is trading at $58.50 per share, had EPS last year of $2.65 per share and is expected to have EPS of $2.75 per share this year. FPL is trading at $35.25 per share, had EPS last year of $1.75 per share and is expected to have EPS of $1.80 per share this year. Looking at trailing P/E, which stock appears to be the more expensive? 8 You are evaluating shares in Procter & Gamble (PG) and comparing it to Unilever (UN). PG is trading at $187.50 per share, had EPS last year of $18.75 per share and is expected to have EPS of $19.75 per share this year. UN is trading at $37.50 per share, had EPS last year of $3.75 per share and is expected to have EPS of $3.85 per share this year. Looking at forward P/E, which stock appears to be the more expensive? Section Two: Harder (5 points each) You are evaluating shares in Lyft (LYFT). They currently pay an annual dividend of $10.00 per share this year but expect to 9 increase this payout by 10% next year and the following year. Then, as the company matures, it expects that dividends will only grow by 5% per year thereafter. If you use of discount rate of 20%, what is the value of the shares? 10 You are evaluating shares in Schlumberger (SLB). They currently pay an annual dividend of $5.50 per share this year but expect to increase this payout by 5% next year and the two following years. Then, as the company matures, it expects that dividends will grow by 2% per year thereafter. If you use of discount rate of 12%, what is the value of the shares? 11 You are evaluating shares in Microsoft (MSFT) and comparing it to Alphabet (GOOG). MSFT is trading at $51.00 per share, had EPS last year of $1.95 per share and is expected to have EPS of $2.05 per share this year. GOOG is trading at $120.00 per share, had EPS last year of $5.00 per share and is expected to have EPS of $5.10 per share this year. You believe that GOOG mature and should trade at the same forward P/E as MSFT. Assuming you are right compute GOOGs expected stock price. 12 You are evaluating shares in Telsa (TSLA) and comparing it to General Motors (GM). TSLA is trading at $250.00 per share, had EPS last year of $12.50 per share and is expected to have EPS which is 5% higher this year. GM is trading at $25.00 per share, had EPS last year of $1.50 per share and is expected to have EPS which is 2% higher this year. You believe that TSLA mature and should trade at the same forward P/E as GM. Assuming you are right, compute TSLAs expected stock price