Reference no: EM132688063
Question 1: The Edward Company is expected to pay a dividend of D1 = $1.00 per share at the end of the year, and that dividend is expected to grow at a constant rate of 2.00% per year in the future. The company's beta is 1.15, the market risk premium is 5.50%, and the risk-free rate is 4.00%. What is the Dividend yield?
Question 2: The Edward Company is expected to pay a dividend of D1 = $1.00 per share at the end of the year, and that dividend is expected to grow at a constant rate of 2.00% per year in the future. The company's beta is 1.15, the market risk premium is 5.50%, the expected market return is 9.5%, and the risk-free rate is 4.00%. What is the stock's expected value, P1 one year from now? (Hint: use rs=10.325%)
Question 3: The Edward Company is expected to pay a dividend of D1 = $1.00 per share at the end of the year, and that dividend is expected to grow at a constant rate of 2.00% per year in the future. The company's beta is 1.15, the market risk premium is 5.50%, the expected market return is 9.5%, and the risk-free rate is 4.00%. What is the capital gain yield?
Question 4: The Edward Company is expected to pay a dividend of D1 = $1.00 per share at the end of the year, and that dividend is expected to have a negative and constant growth rate, -4% per year in the future. The company's beta is 1.15, the market risk premium is 5.50%, the expected market return is 9.5%, and the risk-free rate is 4.00%. What is the company's current stock price? (Hint: use rs=10.325%)
Question 5: The Edward Company is expected to pay a dividend of D1 = $1.00 per share at the end of the year, and that dividend is expected to have a negative and constant growth rate, -4% per year in the future. The company's beta is 1.15, the market risk premium is 5.50%, the expected market return is 9.5%, and the risk-free rate is 4.00%. What is the capital gain yield?