QUESTION
QUESTION 1ABCâs last dividend paid was $2.7, its required return is 19.7%, its growth rate is 5.3%, and its growth rate is expected to be constant in the future. What is Sorenson’s expected stock price in 7 years, i.e., what is P7?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.1 points QUESTION 2ABC Enterprises’ stock is expected to pay a dividend of $2.1 per share. The dividend is projected to increase at a constant rate of 3.9% per year. The required rate of return on the stock is 17.6%. What is the stock’s expected price 3 years from today (i.e. solve for P3)?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.1 points QUESTION 3ABC is expected to pay a dividend of $3.2 per share at the end of the year. The stock sells for $117 per share, and its required rate of return is 18.6%. The dividend is expected to grow at some constant rate, g, forever. What is the growth rate (i.e. solve for g)?Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.1 points QUESTION 4ABC Enterprises’ stock is currently selling for $49.9 per share. The dividend is projected to increase at a constant rate of 4.8% per year. The required rate of return on the stock is 12%. What is the stock’s expected price 5 years from today (i.e. solve for P5)?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.1 points QUESTION 5ABC just paid a dividend of D0 = $4.1. Analysts expect the company’s dividend to grow by 31% this year, by 21% in Year 2, and at a constant rate of 6% in Year 3 and thereafter. The required return on this stock is 11%. What is the best estimate of the stockâs current market value?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.1 points QUESTION 6ABC’s stock has a required rate of return of 19%, and it sells for $67 per share. The dividend is expected to grow at a constant rate of 7.5% per year. What is the expected year-end dividend, D1?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.1 points QUESTION 7ABC Inc., is expected to pay an annual dividend of $0.3 per share next year. The required return is 12.7 percent and the growth rate is 6 percent. What is the expected value of this stock five years from now?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.1 points QUESTION 8A stock just paid a dividend of D0 = $2.3. The required rate of return is rs = 9.5%, and the constant growth rate is g = 6.1%. What is the current stock price?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.1 points QUESTION 9If D1 = $5.08 and P0 = $33.35, what is the dividend yield?Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.1 points QUESTION 10A stock is expected to pay a dividend of $1.3 at the end of the year. The required rate of return is rs = 19.7%, and the expected constant growth rate is g = 7.4%. What is the stock’s current price?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.1 points QUESTION 11ABC Company’s last dividend was $4.3. The dividend growth rate is expected to be constant at 30% for 2 years, after which dividends are expected to grow at a rate of 7% forever. The firm’s required return (rs) is 13%. What is its current stock price (i.e. solve for Po)?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.1 points QUESTION 12The common stock of ABC Industries is valued at $88.6 a share. The company increases their dividend by 12.9 percent annually and expects their next dividend to be $4.7. What is the required rate of return on this stock? That is, solve for r.Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.1 points QUESTION 13ABC’s last dividend was $3.4. The dividend growth rate is expected to be constant at 27% for 3 years, after which dividends are expected to grow at a rate of 7% forever. If the firm’s required return (rs) is 16%, what is its current stock price (i.e. solve for Po)?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.1 points QUESTION 14The common stock of Wetmore Industries is valued at $74 a share. The company increases their dividend by 3.5 percent annually and expects their next dividend to be $3.2. What is the required rate of return on this stock? That is, solve for r.Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.1 points QUESTION 15If D0 = $2.1, g = 7.4%, and P0 = $73.3, what is the required rate of return on the stock? That is, solve for r.Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.1 points QUESTION 16If D1 = $2, g (which is constant) = 3.7%, and P0 = $67.6, what is the required rate of return on the stock? That is, solve for r.Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.
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