Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The risk-free rate is 3.63% and the market risk premium is 9.44%. A stock with a of 0.89 just paid a dividend of $1.71. The

image text in transcribed

The risk-free rate is 3.63% and the market risk premium is 9.44%. A stock with a of 0.89 just paid a dividend of $1.71. The dividend is expected to grow at 23.89% for three years and then grow at 3.13% forever. What is the value of the stock? Submit Answer format: Currency: Round to: 2 decimal places. The risk-free rate is 2.97% and the market risk premium is 8.25%. A stock with a of 1.57 just paid a dividend of $1.94. The dividend is expected to grow at 23.68% for five years and then grow at 3.50% forever. What is the value of the stock? Submit Answer format: Currency: Round to: 2 decimal places. #3 Caspian Sea Drinks needs to raise $39.00 million by issuing additional shares of stock. If the market estimates CSD will pay a dividend of $2.72 next year, which will grow at 3.86% forever and the cost of equity to be 10.14%, then how many shares of stock must CSD sell? Submit Answer format: Number: Round to: O decimal places. Suppose the risk-free rate is 1.83% and an analyst assumes a market risk premium of 5.88%. Firm A just paid a dividend of $1.24 per share. The analyst estimates the B of Firm A to be 1.30 and estimates the dividend growth rate to be 4.21% forever. Firm A has 281.00 million shares outstanding. Firm B just paid a dividend of $1.99 per share. The analyst estimates the of Firm B to be 0.73 and believes that dividends will grow at 2.84% forever. Firm B has 200.00 million shares outstanding. What is the value of Firm A? Submit Answer format: Currency: Round to: 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Monetary Policy Strategy

Authors: Frederic S. Mishkin

1st Edition

0262513374, 978-0262513371

More Books

Students also viewed these Finance questions