Question: 1. If the current dividend (D0) is $3 is expected to grow at 5% per year then what is the expected dividend per share is

1. If the current dividend (D0) is $3 is expected to grow at 5% per year then what is the expected dividend per share is 3 years?

2. Mathias Brothers is expected to pay a $1 per share dividend at the end of the year (D1 = $1). The dividend is expected to grow at a constant rate of 6% per year and the required rate of return on the stock is 14%. What is the stocks intrinsic value?

3. Soul Enterprises recently paid a dividend, D0, of $1. It expects to have non constant growth of 10% for 3 years followed by a constant rate of 6% thereafter. The firms required rate of return is 11%. What is the horizon value at the end of year 3?

4. Soul Enterprises recently paid a dividend, D0, of $1. It expects to have non constant growth of 10% for 3 years followed by a constant rate of 6% thereafter. The firms required rate of return is 11%. What is the intrinsic value of the stock today?

5. Wesson Technologies is expected to generate $100 million in FCF next year and FCF is expected to grow at a constant rate of 4% per year. Wesson has $200 million in debt, no preferred stock, and its WACC is 12%. If Wesson has 40 million shares of stock outstanding, what is the stocks value per share?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!