Question: ABC expects to pay a dividend one year from now of $1.46. The dividend exhibits constant growth of 7.6%, and the required rate of return

ABC expects to pay a dividend one year from now of $1.46. The dividend exhibits constant growth of 7.6%, and the required rate of return on the stock is 13.1%. Given all of this, what price would you expect to pay for the stock? (Show your answer to the nearest penny) You own shares of ABC Corporation, which just paid a dividend of $1.53 per share. You have projected a long-term constant growth rate for the dividends of 7.6%. If your required rate of return on the stock is 11.5%, what is the highest price that you would be willing to pay for additional shares of this stock? (Show your answer to the nearest penny) Calculate the expected dividend yield for each of the following:

-A.B.C.D.E.

D1 = $1.10, g (which is constant) = 6.4%, and P0=$21.82

-A.B.C.D.E.

D1 = $0.90, g (which is constant) = 11.5%, and P0=$33.20

-A.B.C.D.E.

D1 = $1.60, g (which is constant) = 8.0%, and P0=$40.25

-A.B.C.D.E.

D1 = $1.60, g (which is constant) = 5.8%, and P0=$20.69

-A.B.C.D.E.

D1 = $1.15, g (which is constant) = 9.1%, and P0=$37.67

A.

4.0%

B.

2.7%

C.

3.1%

D.

7.7%

E.

5.0%

If D1 = $3.68, g (which is constant) = 10%, and P0 = $68.17, what is the stocks expected dividend yield for the coming year? (Show your answer in decimal form to three places) Mooradian Corporations free cash flow during the just-ended year (t = 0) was $250 million, and its FCF is expected to grow at a constant rate of 5.0% in the future. If the weighted average cost of capital is 12.5%, what is the firms total corporate value, in millions?

a.

$3,255

b.

$2,695

c.

$4,130

d.

$3,850

e. $3,500

Whited Inc.'s stock currently sells for $35.25 per share. The dividend is projected to increase at a constant rate of 5.25% per year. The required rate of return on the stock, rs, is 11.50%. What is the stock's expected price 5 years from now?

a.

$45.53

b.

$40.06

c.

$39.15

d.

$52.81

e.

$47.80

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