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Use a risk-free rate of 2% and a market risk premium of 7% for the first 3 problems A stock with a beta of 2.5

Use a risk-free rate of 2% and a market risk premium of 7% for the first 3 problems

A stock with a beta of 2.5 is expected to pay a dividend of $3.20 next year and grow the dividend at 7% per year afterward. What should be the price of this stock?A stock with a beta of 1.1 just paid a dividend of $1.50 expected to grow at 6% indefinitely.What should be the current price of the stock?

What would you expect the price of the stock to be in five years?A stock with a beta of .6 is priced at $68 and just paid a dividend of $1.80. What growth rate does the market expect for this stock?

A stock just paid a dividend of $1.50 expected to grow at 25% per year for the next four years, then a constant rate of 6%. If you require a return of 9%, what is the most you would be willing to pay for this stock?A stock just paid a dividend of $2 that is expected to double each year for the next three years, then grow at a constant rate of 7%. If you require a return of 11%, what is the most you would be willing to pay for the stock today?You find a stock that doesnt currently pay a dividend but has announced that they will pay their first dividend of $7.50 in eight years and grow the dividend at 7%. If you need a 15% return on the stock, how much would you pay for this stock?A stock doesnt currently pay a dividend, but they have announced that they will pay their first dividend in five years at $1.40 per share. You believe the dividend will grow at 5% afterward and you have a required return of 12%. What is the most you would be willing to pay for this stock

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