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Finance - Week 6 Homework

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Question;Top of FormQuestion 1 If D1 = $4.7, g (which is constant) = 3.7%, and P0 = $73.6, 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.1 pointsQuestion 2 The common stock of Wetmore Industries is valued at $40.6 a share. The company increases their dividend by 7.8 percent annually and expects their next dividend to be $5.6. 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.1 pointsQuestion 3 A stock is expected to pay a dividend of $2.4 at the end of the year. The required rate of return is rs = 11.4%, and the expected constant growth rate is g = 7.5%. 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 pointsQuestion 4 If D1 = $5.41, g (which is constant) = 2%, and P0 = $93.26, 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.1 pointsQuestion 5 ABC just paid a dividend of D0 = $4.3. Analysts expect the company's dividend to grow by 30% this year, by 22% in Year 2, and at a constant rate of 7% in Year 3 and thereafter. The required return on this stock is 14%. What is the best estimate of the stock?s 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 pointsQuestion 6 A stock just paid a dividend of $2.3. The required rate of return is 9.2%, and the constant growth rate is 7.2%. 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 pointsQuestion 7 ABC Company's last dividend was $3.7. The dividend growth rate is expected to be constant at 28% for 2 years, after which dividends are expected to grow at a rate of 6% forever. The firm's required 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 the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.1 pointsQuestion 8 ABC is expected to pay a dividend of $1.4 per share at the end of the year. The stock sells for $109 per share, and its required rate of return is 18.3%. 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 pointsQuestion 9 ABC Enterprises' stock is expected to pay a dividend of $1.8 per share. The dividend is projected to increase at a constant rate of 6.9% per year. The required rate of return on the stock is 16.2%. 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 the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.1 pointsQuestion 10 A stock's next dividend is expected to be $1.1. The required rate of return on stock is 10.6%, and the expected constant growth rate is 2.2%. 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.1 pointsQuestion 11 ABC's stock has a required rate of return of 18.7%, and it sells for $36 per share. The dividend is expected to grow at a constant rate of 5.5% 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 pointsQuestion 12 ABC's last dividend was $5.4. The dividend growth rate is expected to be constant at 25% for 3 years, after which dividends are expected to grow at a rate of 6% 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.1 pointsQuestion 13 ABC Inc., is expected to pay an annual dividend of $5.5 per share next year. The required return is 19.2 percent and the growth rate is 4.3 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 pointsQuestion 14 ABC?s last dividend paid was $2.6, its required return is 12.6%, its growth rate is 3.4%, 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 pointsQuestion 15 The common stock of Connor, Inc., is selling for $31 a share and has a dividend yield of 5 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.1 pointsQuestion 16 If last dividend = $4.7, g = 5.5%, and P0 = $74.4, 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.1 pointsQuestion 17 A stock just paid a dividend of D0 = $1.1. The required rate of return is rs = 14.2%, and the constant growth rate is g = 5.6%. 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 pointsQuestion 18 ABC Enterprises' stock is currently selling for $78.7 per share. The dividend is projected to increase at a constant rate of 5.3% 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.1 points

 

Paper#49694 | Written in 18-Jul-2015

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