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?

Submit

Answer format: Currency: Round to: 2 decimal places.

Show Hint

unanswered

not_submitted

Attempts Remaining: Infinity

#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?

Submit

Answer format: Currency: Round to: 2 decimal places.

unanswered

not_submitted

Attempts Remaining: Infinity

#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?

Submit

Answer format: Number: Round to: 0 decimal places.

Show Hint

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!