Question
SHOW WORK IN EXCEL SHEET QUESTION 1 ABC's stock has a required rate of return of 19%, and it sells for $67 per share.The dividend
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ABC's stock has a required rate of return of 19%, and it sells for $67 per share.The dividend is expected to grow at a constant rate of 7.5% per year.What is the expected year-end dividend, D1?
Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.For example, if your answer is $12.345 then enter as 12.35 in the answer box.
1 points
QUESTION 2
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ABC Enterprises' stockis expected to pay a dividend of$1.9 per share.The dividend is projected to increase at a constant rate of 5.2% per year.The required rate of return on thestockis 17.6%.What is the stock's expected price 3 years from today (i.e. solve for P3)?
Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.For example, if your answer is $12.345 then enter as 12.35 in the answer box.
1 points
QUESTION 3
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Iflast dividend= $3.1, g = 3.4%, and P0= $67.7, what is the stocks expected total return for the coming year?
Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box.For example, if your answer is 0.12345 then enter as 12.35 in the answer box.
1 points
QUESTION 4
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A stock isexpectedto pay a dividend of $2 at the end of the year.The required rate of return is rs= 18.6%, and the expected constant growth rate is g = 6.9%.What is the stock's current price?
Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.For example, if your answer is $12.345 then enter as 12.35 in the answer box.
1 points
QUESTION 5
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ABCs last dividend paid was $1.7, its required return is18.9%, itsgrowth rateis 3.7%, and its growth rate is expected to be constant in the future.What is Sorenson's expected stock price in 7 years, i.e., what is P7?
Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.For example, if your answer is $12.345 then enter as 12.35 in the answer box.
1 points
QUESTION 6
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ABCjust paid a dividend of D0= $2.7.Analysts expect the company's dividend to grow by 32% this year, by 20% in Year 2, and at a constant rate of 6% in Year 3 and thereafter.The required return on this stock is 9%.What is the best estimate of the stocks current market value?
Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.For example, if your answer is $12.345 then enter as 12.35 in the answer box.
1 points
QUESTION 7
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If D1= $3.2, g (which isconstant) = 2.6%, and P0= $60.1, what is the stocks expected total return for the coming year?
Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box.For example, if your answer is 0.12345 then enter as 12.35 in the answer box.
1 points
QUESTION 8
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The common stock of Wetmore Industries is valued at $53.8 a share. The company increases their dividend by4.8 percent annually and expects their next dividend to be $4.7. What is the required rate of return on this stock?
Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box.For example, if your answer is 0.12345 then enter as 12.35 in the answer box.
1 points
QUESTION 9
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ABCInc., is expected to pay an annual dividend of $3.7 per share next year. The required return is16.4 percent and the growth rate is3.5 percent. What is the expected value of this stock five years from now?
Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.For example, if your answer is $12.345 then enter as 12.35 in the answer box.
1 points
QUESTION 10
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ABC's last dividend was $4.5.The dividend growth rate is expected to be constant at 33% for 3 years, after which dividends are expected to grow at a rate of 7% forever.If the firm's required return (rs) is 17%, what is its current stock price (i.e. solve for Po)?
Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.For example, if your answer is $12.345 then enter as 12.35 in the answer box.
1 points
QUESTION 11
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A stock just paid a dividend of D0= $1.9.The required rate of return is rs= 10.1%, and the constant growth rate is g = 6.5%.What is the current stock price?
Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.For example, if your answer is $12.345 then enter as 12.35 in the answer box.
1 points
QUESTION 12
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The common stock of Connor, Inc., is selling for $36 a share and has a dividend yield of4.9 percent. What is the dividend amount?
Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.For example, if your answer is $12.345 then enter as 12.35 in the answer box.
1 points
QUESTION 13
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If D1= $3.5, g (which isconstant) = 2%, and P0= $88.47, what is the stocks expected dividend yield for the coming year?
Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box.For example, if your answer is 0.12345 then enter as 12.35 in the answer box.
1 points
QUESTION 14
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ABCCompany's last dividend was $1.8.The dividend growth rate is expected to be constant at 34% for 2 years, after which dividends are expected to grow at a rate of 6% forever.The firm's required return (rs) is 17%. What is its current stock price (i.e. solve for Po)?
Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.For example, if your answer is $12.345 then enter as 12.35 in the answer box.
1 points
QUESTION 15
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ABC Enterprises' stockis currently selling for $72.1 per share.The dividend is projected to increase at a constant rate of 5.6% per year.The required rate of return on thestockis 12%.What is the stock's expected price5 years from today (i.e. solve for P5)?
Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.For example, if your answer is $12.345 then enter as 12.35 in the answer box.
1 points
QUESTION 16
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ABCis expected to pay a dividend of $1.5 per share at the end of the year.Thestocksells for $145 per share, and its required rate of return is 10.6%.The dividend is expected to grow at some constant rate, g, forever. What is the growth rate (i.e. solve for g)?
Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box.For example, if your answer is 0.12345 then enter as 12.35 in the answer box.
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