What is the estimate of the stock price based on the firm

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Problem 1: If a stock has a current dividend of $2.83, a dividend growth rate of 4% and a stock price of $61.62 what is the dividend yield of the stock?

Problem 2: If a stock has a current dividend of $2.22, a dividend growth rate of 4.1% and a stock price of $72.54 what is the total return of the stock?

Problem 3: Bank of America has a preferred stock dividend of $2.83. The stock is trading for $94.63. What is the expected return of the preferred stock?

Problem 4: A company had free cash flows of $425 million last year. Free cash flows are expected to grow at 2.9% per year. The WACC for the firm is 8.8%. They currently have $6.5 billion in debt outstanding, and have 231 million common stock outstanding. The company does not have any preferred stock. What is the estimate of the stock price based on the firm valuation model?

Problem 5: A company had free cash flows of $556 million last year. Free cash flows are expected to grow at 2.5% per year. The WACC for the firm is 7.9%. They currently have $7.7 billion in debt outstanding, and have 267 million common stock outstanding. The company has 58 million preferred stock outstanding, that currently trade at $33. What is the estimate of the stock price based on the firm valuation model?

Reference no: EM132678663

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