Question

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 of $1.57 The dividend is expected to grow at 24,40% for five years and then grow at 3.59% forever. What is the value of the stock? Submit Answer format: Currency: Round to: 2 decimal places, Caspian Sea Drinks needs to raise $39.00 million by issuing additional shares of stock. If the market estimates CSD will pay a dividend of $1.45 next year, which will grow at 4.82% forever and the cost of equity to be 10.82%, then how many shares of stock must CSD sell? Submit Answer format: Number: Round to: O decimal places Suppose the risk-free rate is 2.66% and an analyst assumes a market risk premium of 6.69% Firm A just paid a dividend of $1.23 per share. The analyst estimates the B of Firm A to be 1.41 and estimates the dividend growth rate to be 4.91% forever. Firm A has 285.00 million shares outstanding Firm B just paid a dividend of $1.97 per share. The analyst estimates the ß of Firm B to be 0.73 and believes that dividends will grow at 2.96% forever. Firm Bhas 185.00 million shares outstanding. What is the value of Firm A? Submit Answer format: Currency: Round to: 2 decimal places. Suppose the risk-free rate is 1.60% and an analyst assumes a market risk premium of 7.95%. Firm Ajust paid a dividend of $1.47 per share. The analyst estimates the B of Firm A to be 1.44 and estimates the dividend growth rate to be 4.96% forever. Firm A has 256.00 million shares outstanding. Firm B just paid a dividend estimates the B of Firm B to be 0.86 and believes that dividends will grow at 3.00% forever. Firm B has 188.00 million shares outstanding. What is the value of Firm B? Submit

Answer 1

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E F Required Return (0) Rf+BxRp Here, B54 X fix =+353*1.0345 A B C D 50 PVIF @ 9.48% Present value 51 D1 $ 2.53 0.913 $ 2.32 52 D2 $ 3.10 0.834 $ 2.59 53 D3 $ 3.80 0.762 $ 2.90 54 04 $ 3.93 55 Share price at year 3 $ 63.06 0.762 $ 48.06 56 4.18/(9.48%-3.45%) 57 Value of the stock $ 55.86 Risk free rate of return (RF) Beta of the stock (B) Market risk premium (Rp) 1.14% 1.53 5.45% Required Return (r) 9.48% 2.7%+1.02x7.02% 59

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