Reference no: EM13711629
1. Calculate the dividend for year 15 if Do is $2.50 and growth is 6%. D15 = $__________
2. Calculate the dividend for each year from D1 through D5 assuming Do is $4 and growth is 7%.
D1 = $
D2 = $
D3 = $
D4 = $
D5 = $
3. Calculate the price of the stock today if Do is $1.00 and growth is 6%. Assume the required rate of return on common stock, rs, is 10%. $_______
4. If you know that the required rate of return, r, on Stock A is 12%, and the dividend yield is 5%, what is the capital gains yield?_____%
5. If P1 is $24.61, and Po is $22.97, what is the capital gains yield? ______%
The total return, r, is 15%. What is the dividend yield? ______%
6. If the dividend, D1, is $1.92, and Po is $23.50, what is the dividend yield? ____% If the total rate of return, r, is 14%, what is the capital gains yield? _____%
7. If the expected rate of return, rˆ, is less than the required rate of return, r, should you buy the stock? Yes -- No. Circle your answer.
If you already own the stock, should you keep it or sell it? Circle your answer.
8. The price of preferred stock X is $65.00, and the dividend per share is 7% of the par value of $100. Calculate the required rate of return on the preferred stock, rp. _____%.
9. If the required rate of return on preferred stock Y with an $8 dividend is 12%, what is the price of the stock? Vp = %___________.
10. Stock Z will pay a dividend of $3.00, but forecasts no growth in the dividend. The current price of the stock, Po, is $30. Calculate the required rate of return, rs.
11. If the dividend on this no growth stock is $1.15 and rs is 13%, calculate Po.
12. If the growth rate (g) is 6%, the price of the stock today (Po) is $24, the dividend today (Do) is $1.00, what is the dividend yield, the capital gains yield, and the total yield, r, (r = required rate of return or total yield).
13. What is the expected price of Stock C four years from now if growth (g) is 6%, and the investors are requiring 11%, (the required rate of return, r, is 11%), and the current dividend, Do, is $1.75. Calculate expected P.
14. Suppose the dividend today, Do, is $2.50, and the growth rate (g) is expected to be 25% for the next three years, followed by a normal growth rate (g) of 6% thereafter.
Assume the investors require 13%, rs. Calculate the value of the stock today, Po. This is the supernormal growth problem.
|
Determine location and business environment
: Determine your location and business environment. Address all legal, zoning, and licensing concerns your business will face. What form of business will you set up? Why? The level of detail required for this section will depend on your type of l..
|
|
Case studies are about real company use most recent
: Case studies are about real company use most recent 10K and analyze. the external environment, strategies being taken, recommendation for strategies, quantitative analysis, recommendations/timeline. its a critical report not based on all inform..
|
|
Volume is occupied by liquid and the rest by vapor
: A 3.03-ft3 rigid tank contains saturated refrigerant- 134a at 100 psia. Initially, 17 percent of the volume is occupied by liquid and the rest by vapor. A valve at the top of the tank is now opened, and vapor is allowed to escape slowly from the tank..
|
|
Firm research
: Imagine you are a small-business owner seeking a federal business opportunity that falls in one of the following categories: competitive 8a, woman-owned, HUBZone, service-disabled veteran-owned, or veteran-owned.
|
|
Calculate value of stock and what is expected price of stock
: What is the expected price of Stock C four years from now if growth (g) is 6%, and the investors are requiring 11%, (the required rate of return - Calculate the dividend for each year from D1 through D5 assuming Do is $4 and growth.
|
|
Changing surface condenser size on power plant performance
: It is required to evaluate the effects of changing surface condenser size on power plant performance. Consider for simplicity an ideal rankine cycle without feed water heaters. the turbine inlet steam is saturated at 1000 psia and has a mass flow rat..
|
|
Determine the final equilibrium pressure in bar
: Two tanks are connected by a valve. One tank contains 2kg of carbon monoxide gas at 77oC and 0.7 bar. The other tank holds 8 kg of the same gas at 27oC and 1.2 bar. The valve is opened and the gases are allowed to mix while receiving energy by heat t..
|
|
A single-stage ideal regenerative steam cycle
: A single-stage ideal regenerative steam cycle has a boiler pressure and temperature of 5000 kPa and 500 C, and a condensing pressure of 10 kPa. The extraction pressure is 500 kPa.
|
|
What is the equation for torque
: Determine the stress that would result in a 1in schedule 40 steel pipe if a plumber applies a force of 70lb at the end of a wrench handle that is 16in long. What is the equation for torque? What is the value of T in this problem? Include units. What ..
|