Question: Please explain Qs 1 and 3 using BAII plus if possible or give me the formula to solve these problems Thanks Multiple Choice Problems (

Please explain Qs 1 and 3 using BAII plus if possible or give me the formula to solve these problems Thanks

Please explain Qs 1 and 3 using BAII plus if possible or

Multiple Choice Problems ( 4.5 points each; 45 points total): 7. If D1=$1.25,g (which is constant) is 4.7 percent, and P0 is $33.00, then If D1=$1.25,g (which is constant) is stock's expected dividend yield for the coming year? a. 3.64 percent b. 4.36 percent (c) 3.79 percent d. 4.70 percent D=131.25 e. 3.67 percent a=a7 2. Which of the following statements is correct? a. Assume that the required return on a given stock is 13%. If the stock's dividend is growing at a constant rate of 5%, its expected dividend yield is 5% as well. b. A required condition to use the constant growth model is that a stock's expected growth rate exceeds its required rate of return. c. A stock's dividend yield can never exceed its expected growth rate. d. The stock valuation model cannot be used for firms which have negative growth rates. e. None of the statements above is correct. A firm is expected to pay a dividend this year of $3.60. The stock's dividend is projected to increase at a constant rate of 4% per year, and the required rate of return on the stock, rm, is 12%. What is the stock's expected price 6 years from now? (4.) $52.68 c. $54.41 c. $55.12 (e.) $56.94 4. Two constant growth stocks, have the same price, and have the same required rate of return. Which of the following statements is CORRECT? a. The two stocks must have the same dividend per share. a. If one stock has a higher dividend yield, it must also have a lower c. If one stock has a higher dividend yield, it must also have a higher dividend growth rate. dividend growth rate. d. The two stocks must have the same dividend growth rate. e. The two stocks must have the same dividend yield

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