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Financial Planning Problems

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Question;Question 11. A stock just paid a dividend of D0 = $1.8. The required rate of return is rs = 9.8%, and the constant growth rate is g = 6.4%. 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 21. The common stock of Connor, Inc., is selling for $58 a share and has a dividend yield of 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.1 points Question 31. ABC just paid a dividend of D0 = $3.6. Analysts expect the company's dividend to grow by 30% this year, by 23% in Year 2, and at a constant rate of 6% 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 points Question 41. If D1 = $6.3, g (which is constant) = 3.6%, and P0 = $63.8, 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 points Question 51. ABC Enterprises' stock is currently selling for $50.4 per share. The dividend is projected to increase at a constant rate of 7.3% 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 Question 61. If last dividend = $4.8, g = 4.9%, and P0 = $77.8, 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 points Question 71. A stock is expected to pay a dividend of $2 at the end of the year. The required rate of return is rs = 15.1%, and the expected constant growth rate is g = 7.7%. 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 81. ABC is expected to pay a dividend of $3.3 per share at the end of the year. The stock sells for $103 per share, and its required rate of return is 10.3%. 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 points Question 91. 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 points Question 101. If D1 = $2.9, g (which is constant) = 2%, and P0 = $52.74, 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 points Question 111. ABC's stock has a required rate of return of 11.5%, and it sells for $48 per share. The dividend is expected to grow at a constant rate of 7.8% 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 121. The common stock of Wetmore Industries is valued at $75.2 a share. The company increases their dividend by 7.3 percent annually and expects their next dividend to be $5.1. 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 points Question 131. ABC Company's last dividend was $1.4. The dividend growth rate is expected to be constant at 29% for 2 years, after which dividends are expected to grow at a rate of 6% 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 141. ABC Enterprises' stock is expected to pay a dividend of $1.9 per share. The dividend is projected to increase at a constant rate of 6.1% per year. The required rate of return on the stock is 17.8%. 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.1 points Question 151. ABC's last dividend was $3.1. The dividend growth rate is expected to be constant at 20% for 3 years, after which dividends are expected to grow at a rate of 5% 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 161. A stock just paid a dividend of $2.5. The required rate of return is 13%, and the constant growth rate is 4.6%. 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.Question 171. ABC?s last dividend paid was $1.1, its required return is 12.4%, its growth rate is 3.6%, 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 181. ABC Inc., is expected to pay an annual dividend of $4.8 per share next year. The required return is 13.2 percent and the growth rate is 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.

 

Paper#50524 | Written in 18-Jul-2015

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