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#2 A stock just paid a dividend of $3.00. The dividend is expected to grow at...

#2
A stock just paid a dividend of $3.00. The dividend is expected to grow at 24.07% for five years and then grow at 4.10% thereafter. The required return on the stock is 11.21%. What is the value of the stock?


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#3
A stock just paid a dividend of $1.46. The dividend is expected to grow at 24.14% for two years and then grow at 3.55% thereafter. The required return on the stock is 11.92%. What is the value of the stock?


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#4
The risk-free rate is 1.79% and the market risk premium is 4.64%. A stock with a β of 1.32 will have an expected return of ____%.


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#5
The risk-free rate is 3.14% and the expected return on the market 8.11%. A stock with a β of 1.17 will have an expected return of ____%.


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Answer #1

Year Cash flows $3.72 $4.62 $5.73 $7.11 $8.82 $129.13 present value factor of 11.21% 0.89920 0.80856 0.72706 0.65377 0.58787

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