Question: Please fast and show your work for support 1. Cole Pharmaceuticals is currently paying a dividend of $1.4 per share, which is not expected to

Please fast and show your work for support

1. Cole Pharmaceuticals is currently paying a dividend of $1.4 per share, which is not expected to change. Investors require a rate of return of 0.17 percent to invest in a stock with the riskiness of Cole. Calculate the intrinsic value of the stock.

2. Baddour Legal Services is currently paying a dividend of $1.34 per share, which is expected to grow at a constant rate of 0.07 percent per year. Investors require a rate of return of 0.11 percent. Phil Baddour, CEO, has asked you to calculate the estimated value of his company.

3. Bibbins Software Company is currently selling for $58 per share and is expected to pay a dividend of $1.91. The expected growth rate in dividends is 0.06 percent for the foreseeable future. Calculate the expected rate of return for this stock.

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!