Steady Eddie Utility, Inc.'s stock currently sells for $40.00 per share. The stock's dividend is projected to increase at a constant rate of 5% per year. The required rate of return on the stock, rs, is 16.50%. What is Steady Eddie Utilities' expected price 3 years from now? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.

Carter's preferred stock pays a dividend of $1.75 per quarter. If the price of the stock is $65.00, what is its nominal (not effective) annual expected rate of return? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.

.Mature Conglomerate Corporation (MCC) just paid a dividend of $1.35 per share, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The company's beta is 1.35, the required return on the market is 12.50%, and the risk-free rate is 4.00%. What is the intrinsic value for MCC's stock? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.

Restful RVs Inc. (RRV) is presently enjoying relatively high growth because of a surge in the demand for recreational vehicles. Management expects earnings and dividends to grow at a rate of 35% for the next 4 years, after which high gas prices will probably reduce the growth rate in earnings and dividends to zero, i.e., g = 0. The company's last paid dividend, D0, was $1.95. RRV's beta is 1.50, the market risk premium is 4.50%, and the risk-free rate is 3.00%. What is the intrinsic value of RRV's common stock? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.

.Suppose Mature No Dividends Corporation's free cash flow during the just-ended (t = 0) year was $175 million, and FCF is expected to grow at a constant rate of 6% in the future. If the weighted average cost of capital is 17%, what is the firm's value of operations, in millions? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.

Diversified Industries, Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be -$18 million (negative), but its FCF at t = 2 will be $35 million. After Year 2, FCF is expected to grow at a constant rate of 4% forever. If the weighted average cost of capital is 13%, what is the firm's value of operations, in millions? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.

Answer rating: 100% (QA)

Solution Steady Eddie Utility Inc Expected price 3 yea... View the full answer