Question: answer all three please #1 The risk-free rate is 2.25% and the market risk premium is 8.81%. A stock with a of 1.29 just paid
answer all three please
#1
The risk-free rate is 2.25% and the market risk premium is 8.81%. A stock with a of 1.29 just paid a dividend of $2.27. The dividend is expected to grow at 22.28% for three years and then grow at 4.88% forever. What is the value of the stock?
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#2
The risk-free rate is 1.35% and the market risk premium is 8.49%. A stock with a of 1.25 just paid a dividend of $1.42. The dividend is expected to grow at 21.97% for five years and then grow at 3.33% forever. What is the value of the stock?
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#3
Caspian Sea Drinks needs to raise $62.00 million by issuing additional shares of stock. If the market estimates CSD will pay a dividend of $2.58 next year, which will grow at 3.29% forever and the cost of equity to be 10.58%, then how many shares of stock must CSD sell?
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