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##### Finance 18 Questions Set

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solution

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Question;Question 11.A stock's next dividend is expected to be $1.3. The required rate of return on stock is 16.9%, andthe expected constant growth rate is 4.3%. What is the stock's current price?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in theanswer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.Answer1 pointsQuestion 21.ABC Company's last dividend was $2.4. The dividend growth rate is expected to be constant at27% for 2 years, after which dividends are expected to grow at a rate of 7% forever. The firm'srequired return (rs) is 12%. 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 theanswer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.Answer1 pointsQuestion 31.ABC just paid a dividend of D0 = $1.7. Analysts expect the company's dividend to grow by 31%this year, by 24% in Year 2, and at a constant rate of 6% in Year 3 and thereafter. The requiredreturn on this stock is 16%. What is the best estimate of the stocks current market value?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in theanswer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.Answer1 pointsQuestion 41.The common stock of Wetmore Industries is valued at $52.6 a share. The company increasestheir dividend by 4.9 percent annually and expects their next dividend to be $1.5. What is therequired rate of return on this stock?Note: Enter your answer rounded off to two decimal points. Do not enter % in the answerbox. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.Answer1 pointsQuestion 51.A stock just paid a dividend of D0 = $2.3. The required rate of return is rs = 12%, and theconstant growth rate is g = 5%. What is the current stock price?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in theanswer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.Answer1 pointsQuestion 61.ABC Enterprises' stock is expected to pay a dividend of $0.8 per share. The dividend isprojected to increase at a constant rate of 4.3% per year. The required rate of return on the stockis 14.2%. 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 theanswer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.Answer1 pointsQuestion 71.The common stock of Connor, Inc., is selling for $62 a share and has a dividend yield of 5.7percent. What is the dividend amount?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in theanswer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.Answer1 pointsQuestion 81.If last dividend = $3, g = 3.7%, and P0 = $62.4, what is the stocks expected total return for thecoming year?Note: Enter your answer rounded off to two decimal points. Do not enter % in the answerbox. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.Answer1 pointsQuestion 91.A stock is expected to pay a dividend of $1.6 at the end of the year. The required rate of return isrs = 11.1%, and the expected constant growth rate is g = 7.3%. What is the stock's current price?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in theanswer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.Answer1 pointsQuestion 101.ABCs last dividend paid was $2.6, its required return is 19.1%, its growth rate is 7.6%, and itsgrowth rate is expected to be constant in the future. What is Sorenson's expected stock price in 7years, i.e., what is P7?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in theanswer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.Answer1 pointsQuestion 111.If D1 = $2.8, g (which is constant) = 3.3%, and P0 = $73.9, what is the stocks expected totalreturn for the coming year?Note: Enter your answer rounded off to two decimal points. Do not enter % in the answerbox. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.Answer1 pointsQuestion 121.A stock just paid a dividend of $0.6. The required rate of return is 18.4%, and the constantgrowth rate is 6.6%. What is the current stock price?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in theanswer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.Answer1 pointsQuestion 131.ABC's stock has a required rate of return of 18.4%, and it sells for $69 per share. The dividendis expected to grow at a constant rate of 6.2% 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 theanswer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.Answer1 pointsQuestion 141.ABC is expected to pay a dividend of $5.4 per share at the end of the year. The stock sells for$172 per share, and its required rate of return is 16.5%. The dividend is expected to grow atsome 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 answerbox. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.Answer1 pointsQuestion 151.ABC Enterprises' stock is currently selling for $75.3 per share. The dividend is projected toincrease at a constant rate of 6.4% 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 theanswer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.Answer1 pointsQuestion 161.ABC Inc., is expected to pay an annual dividend of $3.8 per share next year. The required returnis 14.5 percent and the growth rate is 5.9 percent. What is the expected value of this stock fiveyears from now?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in theanswer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.Answer1 pointsQuestion 171.If D1 = $3.85, g (which is constant) = 2%, and P0 = $89.08, what is the stocks expected dividendyield for the coming year?Note: Enter your answer rounded off to two decimal points. Do not enter % in the answerbox. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.Answer1 pointsQuestion 181.ABC's last dividend was $3.2. The dividend growth rate is expected to be constant at 23% for 3years, after which dividends are expected to grow at a rate of 5% forever. If the firm's requiredreturn (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 theanswer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Paper#47967 | Written in 18-Jul-2015

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