Question
The risk-free rate is 2.52% and the market risk premium is 8.17%. A stock with a of 1.64 just paid a dividend of $1.48. The
The risk-free rate is 2.52% and the market risk premium is 8.17%. A stock with a of 1.64 just paid a dividend of $1.48. The dividend is expected to grow at 24.76% for three years and then grow at 4.10% forever. What is the value of the stock?
The risk-free rate is 1.47% and the market risk premium is 6.64%. A stock with a of 1.11 just paid a dividend of $1.62. The dividend is expected to grow at 21.64% for five years and then grow at 3.52% forever. What is the value of the stock?
Caspian Sea Drinks needs to raise $89.00 million by issuing additional shares of stock. If the market estimates CSD will pay a dividend of $2.21 next year, which will grow at 4.97% forever and the cost of equity to be 10.03%, then how many shares of stock must CSD sell?
Suppose the risk-free rate is 2.30% and an analyst assumes a market risk premium of 6.13%. Firm A just paid a dividend of $1.49 per share. The analyst estimates the of Firm A to be 1.23 and estimates the dividend growth rate to be 4.93% forever. Firm A has 266.00 million shares outstanding. Firm B just paid a dividend of $1.63 per share. The analyst estimates the of Firm B to be 0.75 and believes that dividends will grow at 2.94% forever. Firm B has 181.00 million shares outstanding. What is the value of Firm A?
Suppose the risk-free rate is 3.82% and an analyst assumes a market risk premium of 6.01%. Firm A just paid a dividend of $1.04 per share. The analyst estimates the of Firm A to be 1.30 and estimates the dividend growth rate to be 4.38% forever. Firm A has 267.00 million shares outstanding. Firm B just paid a dividend of $1.75 per share. The analyst estimates the of Firm B to be 0.81 and believes that dividends will grow at 2.33% forever. Firm B has 184.00 million shares outstanding. What is the value of Firm B?
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