20
The risk-free rate is 3.96% and the market risk premium is 9.00%. A stock with a β of 1.19 just paid a dividend of $2.84. The dividend is expected to grow at 20.37% for three years and then grow at 4.84% forever. What is the value of the stock?
Answer format: Currency: Round to: 2 decimal places.
#3 The risk-free rate is 3.70% and the market risk premium is 7.42%. A stock with a β of 1.32 just paid a dividend of $1.09. The dividend is expected to grow at 21.86% for five years and then grow at 4.23% forever. What is the value of the stock?
Answer format: Currency: Round to: 2 decimal places.
#4 Caspian Sea Drinks needs to raise $24.00 million by issuing additional shares of stock. If the market estimates CSD will pay a dividend of $2.42 next year, which will grow at 4.46% forever and the cost of equity to be 10.81%, then how many shares of stock must CSD sell?
Answer format: Number: Round to: 0 decimal places.
#5 Suppose the risk-free rate is 2.27% and an analyst assumes a market risk premium of 7.89%. Firm A just paid a dividend of $1.14 per share. The analyst estimates the β of Firm A to be 1.45 and estimates the dividend growth rate to be 4.44% forever. Firm A has 250.00 million shares outstanding. Firm B just paid a dividend of $1.77 per share. The analyst estimates the β of Firm B to be 0.82 and believes that dividends will grow at 2.04% forever. Firm B has 180.00 million shares outstanding. What is the value of Firm A?
Answer format: Currency: Round to: 2 decimal places.
#6 Suppose the risk-free rate is 1.25% and an analyst assumes a market risk premium of 6.18%. Firm A just paid a dividend of $1.18 per share. The analyst estimates the β of Firm A to be 1.50 and estimates the dividend growth rate to be 4.99% forever. Firm A has 284.00 million shares outstanding. Firm B just paid a dividend of $1.72 per share. The analyst estimates the β of Firm B to be 0.89 and believes that dividends will grow at 2.85% forever. Firm B has 192.00 million shares outstanding. What is the value of Firm B?
1.
=2.84*((1+20.37%)/(1+3.96%+1.19*9%))^1+2.84*((1+20.37%)/(1+3.96%+1.19*9%))^2+2.84*((1+20.37%)/(1+3.96%+1.19*9%))^3+2.84*((1+20.37%)/(1+3.96%+1.19*9%))^3*(1+4.84%)/(3.96%+1.19*9%-4.84%)=44.4300410203936
2.
=1.09*((1+21.86%)/(1+3.7%+1.32*7.42%))^1+1.09*((1+21.86%)/(1+3.7%+1.32*7.42%))^2+1.09*((1+21.86%)/(1+3.7%+1.32*7.42%))^3+1.09*((1+21.86%)/(1+3.7%+1.32*7.42%))^4+1.09*((1+21.86%)/(1+3.7%+1.32*7.42%))^5+1.09*((1+21.86%)/(1+3.7%+1.32*7.42%))^5*1.0423/(3.7%+1.32*7.42%-4.23%)=24.2802350637436
3.
=24*10^6/(2.42/(10.81%-4.46%))=629752.066115703
4.
=1.14*1.044/(2.27%+1.45*7.89%-4.44%)=12.8381424950111
20 The risk-free rate is 3.96% and the market risk premium is 9.00%. A stock with...
The risk-free rate is 3.96% and the market risk premium is 9.00%. A stock with a β of 1.19 just paid a dividend of $2.84. The dividend is expected to grow at 20.37% for three years and then grow at 4.84% forever. What is the value of the stock? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted #3 The risk-free rate is 3.70% and the market risk premium is 7.42%. A stock with a β of 1.32...
Suppose the risk-free rate is 3.61% and an analyst assumes a market risk premium of 5.35%. Firm A just paid a dividend of $1.40 per share. The analyst estimates the β of Firm A to be 1.48 and estimates the dividend growth rate to be 4.44% forever. Firm A has 263.00 million shares outstanding. Firm B just paid a dividend of $1.66 per share. The analyst estimates the β of Firm B to be 0.76 and believes that dividends will...
The risk-free rate is 1.14% and the market risk premium is 5.45% Astock with a 3 of 1.53 just paid a dividend of $2.07 The dividend is expected to grow at 22.46% for three years and then grow at 3.45% forever. What is the value of the stock? Submit Answer format: Currency: Round to: 2 decimal places. The risk-free rate is 2.36% and the market risk premium is 7.05%. A stock with a ß of 1.18 just paid a dividend...
#5 Suppose the risk-free rate is 2.27% and an analyst assumes a market risk premium of 5.90%. Firm A just paid a dividend of $1.43 per share. The analyst estimates the β of Firm A to be 1.42 and estimates the dividend growth rate to be 4.55% forever. Firm A has 295.00 million shares outstanding. Firm B just paid a dividend of $1.61 per share. The analyst estimates the β of Firm B to be 0.74 and believes that dividends...
Suppose the risk-free rate is 2.45% and an analyst assumes a market risk premium of 5.30%. Firm A just paid a dividend of $1.31 per share. The analyst estimates the β of Firm A to be 1.45 and estimates the dividend growth rate to be 4.89% forever. Firm A has 260.00 million shares outstanding. Firm B just paid a dividend of $1.59 per share. The analyst estimates the β of Firm B to be 0.83 and believes that dividends will...
The risk-free rate is 2.77% and the market risk premium is 7.64%. A stock with a β of 1.28 just paid a dividend of $2.96. The dividend is expected to grow at 20.83% for five years and then grow at 4.65% forever. What is the value of the stock? Suppose the risk-free rate is 2.40% and an analyst assumes a market risk premium of 6.68%. Firm A just paid a dividend of $1.12 per share. The analyst estimates the β...
4 Caspian Sea Drinks needs to raise $74.00 million by issuing additional shares of stock. If the market estimates CSD will pay a dividend of $2.03 next year, which will grow at 3.01% forever and the cost of equity to be 11.93%, then how many shares of stock must CSD sell? Submit Answer format: Number: Round to: 0 decimal places. unanswered not_submitted #5 Suppose the risk-free rate is 2.36% and an analyst assumes a market risk premium of 5.49%. Firm...
Suppose the risk-free rate is 2.62% and an analyst assumes a market risk premium of 6.31%. Firm A just paid a dividend of $1.48 per share. The analyst estimates the β of Firm A to be 1.27 and estimates the dividend growth rate to be 4.77% forever. Firm A has 263.00 million shares outstanding. Firm B just paid a dividend of $1.52 per share. The analyst estimates the β of Firm B to be 0.74 and believes that dividends will...
Suppose the risk-free rate is 1.39% and an analyst assumes a market # 6 risk premium of 7.85%. Firm A just paid a dividend of $1.44 per share. unanswered The analyst estimates the B of Firm A to be 1.38 and estimates the not_submitted dividend growth rate to be 4.83% forever. Firm A has 298.00 million shares outstanding. Firm B just paid a dividend of $1.71 per share. The analyst estimates the B of Firm B to be 0.73 and...
Suppose the risk-free rate is 3.46% and an analyst assumes a market risk premium of 6.46%. Firm A just paid a dividend of $1.29 per share. The analyst estimates the β of Firm A to be 1.25 and estimates the dividend growth rate to be 4.64% forever. Firm A has 288.00 million shares outstanding. Firm B just paid a dividend of $1.89 per share. The analyst estimates the β of Firm B to be 0.78 and believes that dividends will...