Question: Stock Valuation Problems ( Please wether you use excel or not to solve those problems, show your steps so that i can understand) 8.Fisher Companys
Stock Valuation Problems ( Please wether you use excel or not to solve those problems, show your steps so that i can understand)
8.Fisher Companys current stock price is $36 00, its last dividend was $2 40, and its required rate of return is 12%. If dividends are expected to grow at a constant rate, g, in the future and if rs is expected to remain at 12%, what is Fishers expected stock price 5 years from now?
9.You can value a stock based just on its expected cash flows to an investor. If a stock is expected to pay dividends of $1.25 per year for the next five years and you believe that you can sell it for $65 at the end of the five year period, what is its value if your required rate of return is 11%?
10.If you paid $50 for a share of stock and received dividends of $2 per year for 3 years and then sold the stock for $70, what was your rate of return? Hint: Use the IRR function in Excel. Thank you for helping !
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