Reference no: EM132798331

Q1: Tindall Enterprises expects to pay a $2.00 dividend per share on its common stock one year from now. At the end of each of the 5 years following this dividend it expects that it will pay a dividend that is 7.00% larger than the prior dividend. At the end of each year thereafter it expects that each dividend will be 4.00% larger than the prior dividend. If Tindall's annual cost of equity capital is 10.00%, what will be the current price of a share of Tindall Enterprises' common stock according to the dividend discount model? Round your final answer to two decimal places.

Q2: Weston Inc. has just reported annual earnings of $100 million, a payout ratio of 30.00%, and a ROE of 8.00%. Weston also just paid a dividend of $2.00 per share and expects to maintain its payout ratio, ROE, and number of shares outstanding indefinitely. Assuming that Weston makes dividend payments at the end of each year and has an annual cost of equity capital of 7.00%, estimate the price of a share of Weston's common stock using the dividend discount model. Round your final answer to two decimal places.

Q3: Dent Corp. has just reported annual free-cash-flows of $2,000 million. Dent Corp. expects to have an investment ratio of 70% and an ROIC of 20% indefinitely. Dent Corp currently has $ 500 million in net debt, 200 million shares outstanding, and an annual weighted average cost of capital of 18.00%. Given this information, estimate the price of a share of Dent Corp.'s common stock using the discount free-cash-flow model. Round your final answer to two decimals.

Q4: XYZ Corp. expects to have earnings of $ 300 million. XYZ also has 100 million shares of common stock outstanding. The average P/E ratio of similar stocks is 20. Given this information what do you estimate is a fair price for a share of XYZ common stock? Round your final answer to two decimals.