  (Solution) If Early 2017 You Bought A Stock That Is Expected To Pay A Dividend Of \$4 By The End Of 2017, The Dividend Is Expected To Grow At A Constant Growth... | Snapessays.com

(Solution) If early 2017 you bought a stock that is expected to pay a dividend of \$4 by the end of 2017, the dividend is expected to grow at a constant growth...

1.If early 2017 you bought a stock that is expected to pay a dividend of \$4 by the end of 2017, the dividend is expected to grow at a constant growth rate of 1% hence after. What was the value of this stock in early 2017 according to the dividend discount model (DDM) if the discount rate was 8%? 2.A firm has an expected free cash flow of \$3,610,864 by the end of 2018 that is expected to be constant at this level beyond this year forever. If its cost of capital is 7%, what is the value of this firm by the end of 2018? 3. By the early of 2016, a firm had a book value per share (BPS) of \$79, a ROCE of 17% for 2016. If the required return is 11%, what is the Residual earnings for 2016? 4.A project has an initial cost of \$1,000,000 and is expected to last for 2 years. In year 1, depreciation charge will be \$100,000 and earnings are expected to be \$108,463. In year 2, depreciation will be \$100,000 and earnings are expected to be \$209,998. Assume the required return is 9%. What is the value of this project? 5.A stock trades for \$89 has a book value per share of \$22, analysts’ EPS forecast for year 1 is \$11. The required return is 10%. What is the speculative value implied by the observed market price?

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This question was answered on: May 23, 2022 Solution~00021147719874.zip (25.37 KB)

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May 23, 2022

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