What is the best estimate of stock current market value

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1. Nachman Industries just paid a dividend of D0 = $1.32. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this stock is 9.00%. What is the best estimate of the stock’s current market value?

2. Department A has 120 hours of capacity, department B has 160 hours of capacity, and 90 meters of material are available. Each shirt contributes $10 to profits; each pair of shorts, $10; and each pair of pants, $23.(Let L = #shirts manufactured, let H = #shorts manufactured, Let P = # pants manufactured) Formulate the problem algebraically as a linear programming model. Solve this problem using Excel.

Reference no: EM131875930

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