Reference no: EM133004614
Solve in excel
1-Suppose ABC's expected dividend next year (i.e., Period 1) is $4.1. If its dividend is likely to grow at a constant rate of 6.8% forever, compute its stock value in Period 3 when the required rate of return is 14.8%.
2-Suppose ABC Inc.'s expected dividend for next year is $3.9 and it is expected to grow at a constant rate of 3.7% perpetually. Compute the current value of the stock if the required rate of return = 10.2%. Round your answer to two decimal places.
3-Altman Inc. just paid an annual dividend of $5.1 per share and its dividend per share is expected to increase 3% constantly forever. Compute Alpaca's value in Year 5 if the required rate of return is 9.5%.
4-Suppose you purchase a stock for $ 2.6 per share. If you are paid a dividend of $ 2.8 per share until you sell the stock for $ 9.3 a share, what is the total % return from this investment?
5-One year ago, Peyton purchased Stock A for $ 4.5 per share. During the year, he was paid a dividend of $ 5.4 per share. Today, he sold those shares for $ 5.4 a share. What is the total % return from this investment?
6-Suppose Stock A has the following prices from t0 to t3. Compute its arithmetic average return. Enter your answer in %, rounded to 2 decimal places. (HINT: You have to compute the return for each period, first.)
Price
t0. 2.4
t1. 2.1
t2. 9.2
t3. 6.4
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: 1-Suppose ABC's expected dividend next year (i.e., Period 1) is $4.1. If its dividend is likely to grow at a constant rate of 6.8% forever, compute its stock va
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