1a.) Stock Values

Anton, inc.. just paid a dividend of $1.95 per share on its stock. the dividends are expected to grow at a constant rate of 4.1 percent per year. indefinitely. if investors require a return of 10.2 percent on this stock, what is the current price? what will the price be in three years? in 15 years? Show in excel formula.

1b.) Stock Values- For the company in the previous problem, what is the dividend yield? what is the expected capital gains yield? Show in excel formula.

5.) Stock Valuation - Raffalovich, Inc. is expected to maintain a constant 4.9 percent growth rate in its dividends, indefinitely. If the company has a dividend yield of 5.7 percent, what is the required return on the companys stock? Show in excel formula.

7.) Stock Valuation

Bui Corp. pays a constant $12 dividend on its stock. The company will maintain this dividend for the next nine years and will then cease paying dividends forever. If the required return on this stock is 10 percent, what is the current share price? Show in excel formula.

10.) Growth Rates-

The stock price of Webber Co. is $68. Investors require an 11 percent rate of return on similar stock. If the company plans to pay a dividend of $3.85 next year, what growth rate is expected for the companys stock price? Show in excel formula.

12.) Stock Valuation

Alexander Corp. will pay a dividend of $2.72 next year. The company has stated that it will maintain a constant growth rate of 4.5 percent a year forever. If you want a return of 12 percent, how much will you pay for the stock? What if you want a return of 8 percent? What does this tell you about the relationship between the required return and the stock price? Show in excel formula.

14.) Stock Valuation and PS Ratio-

TwitterMe, Inc. is a new company and currently has negative earnings. The companys sales are $1.2 million and there are 130,000 shares outstanding. If the benchmark price-sales ratio is 5.2, what is your estimate of an appropriate stock price? What if the price-sales ratio were 4.6? Show in excel formula.