Question

A firm has just paid a dividend of 11, dividends are expected to grow at 3% in the future. If the firm has a beta of 0.8 and the market risk premium and risk free rate are 10.7% and 3.2% respectively, then what is the intrinsic value of this firm today?

Answer #1

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Your firm has a beta of 0.5 and just paid a dividend of $1.20
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premium is 7%, should you make the acquisition?
A. Yes
B. No

Consider the following data for a firm that has just paid $3 per
share dividend which is expected to grow at a constant annual rate
in the future.
Equity Beta=2
Risk-free interest rate= 5%
Expected market return= 10%
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What per-share dividend growth rate is being expected by the
market?

Temple Lunch Trucks, Inc. just paid a dividend of $2.00.
Dividends are expected to grow at a rate of 3% per year from here
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Lunch Trucks’ stock is only 40% as risky as the market, what is
the most that you should be willing to pay for a share of this
stock today?

1.) Firm Y's dividend is expected to grow at a rate of 12% per
year over the next 3 years and then slow to a growth rate of 4%
perpetually. The company's cost of equity is 11% and the annual
dividend that has just been paid was $2.95.
The estimated present value at time 2 of all future dividends
beyond that point in time is?
Multiple Choice $55.06 $59.21 $67.50 $64.54
2:)
Firm Y's dividend is expected to grow at...

MasksAreUs Inc. just paid a dividend of $3 per share. Future
dividends are expected to grow at a constant rate of 5% per year.
What is the value of the stock if the required return is 8%?

Sierra Corporation has just paid a dividend of $2 per share, and
its dividends are expected to grow at a steady rate of 6% for the
foreseeable future. The firm’s shares are currently selling for $30
per share, with an equity beta of 1.2. The risk-free rate is 5% and
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equity if we were to calculate it as the average of the costs of
equity from the dividend...

Widget Manufacturers Inc. just paid a $3 per share dividend. It
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thereafter. Widget’s’ equity beta is 0.90, while the risk-free rate
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Based on this information, compute the price per share of Widget
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Round your answer to the nearest penny. For example,
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market is 12.50%, and the risk-free rate is 2.40%. Calculate the
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thankyou !

7) Firm D just paid a dividend of $2.00, and its dividend is
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Question 1/ Firm A has just paid a dividend of $1.5 per share.
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by 6.5%. Starting from year 4 the dividends are expected to grow
constantly by 4.5% forever. The required rate of return on the
stocks is 12%. a/ Compute the intrinsic value of the stock now?
(Show your steps) b/ Compute...

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