(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? 

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: May 23, 2022

Solution~00021147719875.zip (25.37 KB)


This attachment is locked

Our expert Writers have done this assignment before, you can reorder for a fresh, original and plagiarism-free copy and it will be redone much faster (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

May 23, 2022

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • ■ As a reference for in-depth understanding of the subject.
  • ■ As a source of ideas / reasoning for your own research (if properly referenced)
  • ■ For editing and paraphrasing.

This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

Get Free Price Quote