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show all work pls 4. The current price of ABC Corporation stock is $26.50 per share. Tomorrow the company will announce that next year's earning
show all work pls
4. The current price of ABC Corporation stock is $26.50 per share. Tomorrow the company will announce that next year's earning are expected to be $3 per share. The expected P/E multiple is 15 times. What price would you expect for ABC stock after the earning's news? ( 8 points) 5. Swanson Company's long-run dividend growth rate is expected to be 8 percent (g). If the required return (rs) for Swanson is 16%, and the most recent dividend (D0 ) was $2.00, what is the most likely Swanson's stock price two years from now? (12 points) 6. Hope corporation paid a dividend of $2.00(D0) last year. The growth rate is expected to be 20 percent and 10 percent during the next two years, and then the growth rate is expected to be a constant 5 percent thereafter. The required rate of return on equity (rS) is 10 percent. What is the current stock price (P0) ? (18 points) Step by Step Solution
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