What is the value per share of cell stock

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Question 1 Joe Industries just paid a dividend of $1.50 a share. The dividend is expected to grow 5% a year for the next 3 years and then 10% a year thereafter. What is the expected dividend per share for each of the next 5 years?

Question 2 Cell Incorporated is expected to pay a $1.50 per share dividend at the end of this year. The dividend is expected to grow at a constant rate of 7% a year. The required rate of return on the stock is 15%. What is the value per share of Cell's stock?

Question 3 Joe Book Stores has a beta of 0.8. The yield on a 3-month T-bill is 4%. The market risk premium is 5.5%, and the return on an average stock in the market last year was 15%. What is the estimated cost of common equity using the CAPM?

Question 4 Lee Importer's balance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in total common equity. Lee's tax rate is 40%, [. = 6%, Ips = 5.8%, and Is = 12%. If Lee has a target capital structure of 30% debt, 5% preferred stock, and 65% common stock, what is its WACC?

Question 5 A project has an initial cost of $52,125, expected net cash inflows of $12,000 per year for 8 years, and a cost of capital of 12%. What is the project's NPV?

Question 6 A project has an initial cost of $52,125, expected net cash inflows of $12,000 per year for 8 years, and a cost of capital of 12%. What is the project's NPV?

Reference no: EM133337124

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