Question: Problem 10-34 Common stock value based on PV calculations (L010-5) Martin Office Supplies paid a $8 dividend last year. The dividend is expected to grow

Office Supplies paid a $8 dividend last year. The dividend is expected

to grow at a constant rate of 5 percent over the next

four years. The required rate of return is 15 percent (this will

also serve as the discount rate in this problem). Use Appendix B

Problem 10-34 Common stock value based on PV calculations (L010-5) Martin Office Supplies paid a $8 dividend last year. The dividend is expected to grow at a constant rate of 5 percent over the next four years. The required rate of return is 15 percent (this will also serve as the discount rate in this problem). Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods a. Compute the anticipated value of the dividends for the next four years. (Do not round intermediate calculations, Round your final answers to 2 decimal places.) 24 Anticipated Value D1 02 DS 04 b. Calculate the present value of each of the anticipated dividends at a discount rate of 15 percent (Do not round intermedi calculations. Round your final answers to 2 decimal places.) PV of Dividends D1 02 03 D4 Total $ 0.00 + OF Dit Hox ortheducation.com/inde concert connect educat CHIO HW O Help Savetat Sub 1 Check my word c. Compute the price of the stock at the end of the four year(Do not round intermediate calculations. Round your final answer to 2 decimal places.) a. Calculate the present value of the year 4 stopnice at a discount of 15 percent (Do not found intermediate calculation Round your final answer to 2 decimal places Compute the cuttet vide of the stock Do not Found intermediate calculations. Round your final answer to 2 decimal places) D MK Gr P 18 Next > 39 PM 044 CHIO HW O Help Seve Ed Submit Check my work 1 1. Use the formula given below to show that it will provide approximately the same answer as parte (Do not round intermediate calculations. Round your final answer to 2 decimal places) 02 PE -G 30 0223 Dual 9. f current EPs were equal to 5780 and the Peris higher than the industry average of 6 what would the stock price be? (Do not round intermediate calculations. Round your final answer to 2 decimal places) Stock ME G HU Pre 110 Next > 9 . 31 PM 421/2012 CHIO HW Help Save & E Submit Check my werk 1 10 hey what dollar amount is the stock price in part different from the stock price in part 1 (Do not found intermediate calculations Round your final answer to 2 decimal places.) 02:10 Amount 1. With regard to the stock price in part indicate which direction it would move it De 12) Koin increase ME GEW Prey 1 of 10 Next > 931 PM AD ENE

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