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Finance Assignment Questions

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Question;Question 1;1. A stock just paid a dividend of D0 = $1.3. The required;rate of return is;rs = 14.2%, and the constant growth rate is g = 5.1%. 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.;Question 2;1. ABC?s last dividend paid was $2.5, its required return is;19.6%, its growth rate is;3.5%, 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.;Question 3;1. ABC Company's last dividend was $0.4. The dividend growth;rate is;expected to be constant at 16% for 2 years, after which;dividends are;expected to grow at a rate of 6% forever. The firm's;required return (rs);is 11%. 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.;Question 4;1. If D1 = $3.28, g (which is constant) = 2%, and P0 =;$83.48, what is the;stock?s expected dividend yield for the coming year?;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.;Question 5;1. If last dividend = $6.4, g = 6.1%, and P0 = $78.9, what is;the stock?s;expected total return for the coming year?;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.;Question 6;1. A stock just paid a dividend of $1.1. The required rate;of return is 15%;and the constant growth rate is 3.7%. 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.;Question 7;1. ABC is expected to pay a dividend of $0.3 per share at;the end of the;year. The stock sells for $171 per share, and its required;rate of return is;13.4%. 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.;Question 8;1. ABC Inc., is expected to pay an annual dividend of $0.8;per share next;year. The required return is 14.2 percent and the growth;rate is 6.7;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.;Question 9;1. A stock's next dividend is expected to be $1.5. The required;rate of;return on stock is 16.3%, and the expected constant growth;rate is 5.6%.;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.;Question 10;1. The common stock of Wetmore Industries is valued at $56.7;a share. The;company increases their dividend by 6.2 percent annually and;expects;their next dividend to be $3. What is the required rate of;return on this;stock?;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.;Question 11;1. ABC's stock has a required rate of return of 11.2%, and;it sells for $55;per share. The dividend is expected to grow at a constant;rate of 6.1%;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.;Question 12;1. If D1 = $6.1, g (which is constant) = 2.9%, and P0 =;$76.4, what is the;stock?s expected total return for the coming year?;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.;Question 13;1. ABC Enterprises' stock is currently selling for $90.2 per;share. The;dividend is projected to increase at a constant rate of 3.3%;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.;Question 14;1. ABC just paid a dividend of D0 = $4.5. Analysts expect;the company's;dividend to grow by 34% this year, by 28% in Year 2, and at;a constant;rate of 7% in Year 3 and thereafter. The required return on;this stock is;17%. What is the best estimate of the stock?s currentMARKET;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.;Question 15;1. A stock is expected to pay a dividend of $1 at the end of;the year. The required;rate of return is rs = 16.5%, and the expected constant;growth rate is g = 7.2%.;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.;Question 16;1. The common stock of Connor, Inc., is selling for $31 a;share and has a;dividend yield of 2.2 percent. What is the dividend amount?;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.;Question 17;1. ABC's last dividend was $3.7. The dividend growth rate is;expected to;be constant at 29% for 3 years, after which dividends are;expected to;grow at a rate of 5% forever. If the firm's required return;(rs) is 17%;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.;Question 18;1. ABC Enterprises' stock is expected to pay a dividend of;$0.4 per share.;The dividend is projected to increase at a constant rate of;5.4% per year.;The required rate of return on the stock is 18.8%. 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.

 

Paper#48948 | Written in 18-Jul-2015

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