Reference no: EM13760097
Question 1: Use the constant-growth model (Gordongrowth model) to find the value of each firm shown in the following table.
Firm Dividend Expected Next Year Divided Growth Rate Required Return
A $1.20 8% 13%
B 4.00 5 15
C 0.65 10 14
D 6.00 8 9
E 2.25 8 20
Question 2: Elk County Telephone has paid the dividends shown in the following table over the past 6 years.
Year Dividend Per Share
2012 $2.87
2011 2.76
2010 2.60
2009 2.46
2008 2.37
2007 2.25
The firm's dividend per share next year is expected to be $3.02.
a. If you can earn 13% on similar-risk investments, what is the most you would be
willing to pay per share?
b. If you can earn only 10% on similar-risk investments, what is the most you
would be willing to pay per share?
Question 3: Given the following information for the stock of Foster Company, calculate the risk premium on its common stock.
Current price per share of common $50.00
Expected dividend per share next year $ 3.00
Constant annual dividend growth rate 9%
Risk-free rate of return 7%
Question 4: Micro-Pub, Inc., is considering the purchase of one of two microfilm cameras, R and S. Both should provide benefits over a 10-year period, and each requires an initial investment of $4,000. Management has constructed the accompanying table of estimates of rates of return and probabilities for pessimistic, most likely, and optimistic results.
a. Determine the range for the rate of return for each of the two cameras.
b. Determine the expected value of return for each camera.
|
Expansion into a foreign market
: Assume that the company reviewed, voted on, and accepted the study that you prepared for Assignment 1. Everyone involved is satisfied with your analysis of the country's culture, politics, laws, ethics, and economics. Now, you are being asked to look..
|
|
Scientific inquiry in biology starts by observing the living
: Scientific inquiry in biology starts by observing the living species around you. What separates science from the other methods of seeking truth is that it is testable (e.g., one can devise experiments to test the validity of an idea); it is falsifiab..
|
|
Identification of a health problem
: All key elements of the assignment are covered in a substantive way. · Identification of a health problem that Mitch may be at risk for· Two nutritional goals and two physical exercise goals
|
|
The particular disease or condition
: Write a 6-10 page paper (including separate title and reference pages). Identify the factors that could have caused or lead (Pathogenesis) to the particular disease or condition, the signs and symptoms, and other affected body systems that are associ..
|
|
Calculate the risk premium on its common stock
: Given the following information for the stock of Foster Company, calculate the risk premium on its common stock.
|
|
Write an essay - the innovation or new idea in food science
: Write an essay about the innovation or new idea in food science or nutrition. And with PowerPoint presentation.
|
|
Barker company has a single product called a zet
: Barker Company has a single product called a Zet. The company normally produces and sells 80,000 Zets each year at a selling price of $40 per unit. The company's unit costs at this level of activity are given below
|
|
Discuss your experiences with poverty or wealth
: The forty wealthiest people in the United States will make more in a year than 60% of the population combined. Over a billion people on this planet live on less than dollar a day. Discuss your experiences with poverty or wealth.
|
|
Create a spreadsheet averaging the list of ctu classes
: Imagine that you are currently enrolled in three CTU classes: UNIV104, IT254, and MATH102. In this project, you will create a spreadsheet averaging the list of CTU classes that you are currently enrolled in.
|