The risk-free rate is 1.25% and the market risk premium is 5.78%. A stock with a of 0.84 just paid a dividend of $2.17. The dividend is expected to grow at 20.45% for three years and then grow at 4.90% forever. What is the value of the stock?

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#2

The risk-free rate is 1.04% and the market risk premium is 8.82%. A stock with a of 0.98 just paid a dividend of $2.43. The dividend is expected to grow at 24.37% for five years and then grow at 3.63% forever. What is the value of the stock?

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#3

Caspian Sea Drinks needs to raise $33.00 million by issuing additional shares of stock. If the market estimates CSD will pay a dividend of $1.12 next year, which will grow at 3.76% forever and the cost of equity to be 13.40%, then how many shares of stock must CSD sell?

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