The risk-free rate is 1.40% and the market risk premium is 6.58%. A stock with a of 1.79 just paid a dividend of $2.48. The dividend is expected to grow at 21.08% for three years and then grow at 3.85% forever. What is the value of the stock?

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#2

The risk-free rate is 2.34% and the market risk premium is 8.46%. A stock with a of 0.96 just paid a dividend of $1.70. The dividend is expected to grow at 20.42% for five years and then grow at 3.57% forever. What is the value of the stock?

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#3

Caspian Sea Drinks needs to raise $44.00 million by issuing additional shares of stock. If the market estimates CSD will pay a dividend of $1.04 next year, which will grow at 3.92% forever and the cost of equity to be 11.05%, then how many shares of stock must CSD sell?

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#4

Suppose the risk-free rate is 1.31% and an analyst assumes a market risk premium of 7.28%. Firm A just paid a dividend of $1.15 per share. The analyst estimates the of Firm A to be 1.35 and estimates the dividend growth rate to be 4.84% forever. Firm A has 289.00 million shares outstanding. Firm B just paid a dividend of $1.52 per share. The analyst estimates the of Firm B to be 0.76 and believes that dividends will grow at 2.20% forever. Firm B has 180.00 million shares outstanding. What is the value of Firm A?

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#5

Suppose the risk-free rate is 2.81% and an analyst assumes a market risk premium of 7.35%. Firm A just paid a dividend of $1.13 per share. The analyst estimates the of Firm A to be 1.20 and estimates the dividend growth rate to be 4.86% forever. Firm A has 251.00 million shares outstanding. Firm B just paid a dividend of $1.65 per share. The analyst estimates the of Firm B to be 0.86 and believes that dividends will grow at 2.86% forever. Firm B has 186.00 million shares outstanding. What is the value of Firm B?

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