Question: Jack, Inc. Required return to stockholders = 1 2 . 0 % Just paid a Dividend of $ 2 . 0 0 Growth rate of

Jack, Inc.
Required return to stockholders =12.0%
Just paid a Dividend of $2.00
Growth rate of dividend =4.0%
What is the price of stock Jack?
Jill, Inc.
Dividends: d0=$2.50,d1=$2.65,d2=$2.95,d3=$3.50
From d3 onwards, the dividend grows at a 4.0% rate.
Required return for stock =14.0%
What is the stock price of Jill today?
Jenny, Inc. has the following data available:
FCF0=$12,000
The FCF remains constant over the future years, i.e., no growth.
WACC =15.0%,
L.T. Debt =$20,000
# of Common Stocks outstanding: 5,000
Compute the Stock price of Jenny.
John, Inc. has the following data available:
FCF0=1,904,762
g of FCF=5.0%,
WACC =16.0%,
S.T. Investments =$3,818,182
L.T. Debt =$8,000,000
# of Common Stocks outstanding: 1,400,000
Compute the Stock price of John.
Joann, Inc.
FCF1=25.00,FCF2=27.00,FCF3=30.00
From FCF3 onwards, FCF grows at a 5.0% constant rate.
WACC =16.0%
L.T. Debt Outstanding: $44.30
# of Common Stock outstanding: 50
What is the price of stock Joann?
 Jack, Inc. Required return to stockholders =12.0% Just paid a Dividend

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