Question 1. Beta Co. will pay $6.6 a share next year. Its dividends will grow at 3.0% until Year 3, and after the third year, dividends will grow at 3.4% forever. What is this stock worth today at a discount rate of 8.8 percent?

Question 2. Beta Co. is going to pay $0.9, $1.1, and $2.3 a share over the next three years, respectively. After the third year, dividends will grow at 3.2% forever. What is this stock worth today at a discount rate of 7.5 percent?

Question 3.

Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 20 years from now with a retirement income of $10,000 per month for 20 years, with the first payment received 20 years and 1 month from now. Second, he would like to purchase a Tesla in 10 years at an estimated cost of $129,341. Third, after he passes on at the end of the 20 years of withdrawals, he would like to leave an inheritance of $488,236. He can afford to save $5,000 per month for the next 10 years. If he can earn an APR of 6.1 percent before he retires and an APR of 6.5 percent after he retires, how much will he have to save each month in Years 11 through 20?

Question 4.

You are given the following information concerning Baron Co. Calculate the WACC for Baron Co.

• Debt: 11,245 5% coupon bonds outstanding, quoted at 105, with 20 years to maturity. These bonds pay interest semiannually.
• Common Stock: 350,000 shares common stock selling for $56.49 per share. The stock has a beta of 1.07.
• Preferred Stock: 10,000 shares of preferred stock with a dividend of $5.20 per share. It is currently selling at $105.09 per share.
• Market: The market premium is 7.5%, and the risk-free rate of return is 2.5%.
• tax bracket = 35%

Please show the calculations