Reference no: EM13833762
Please turn in the answers to the following questions:
2. (common stock valuation, constant growth) You’ve discovered a company that is expected to pay $2.25 dividend at the end of this year. The dividend is expected to grow forever at a constant rate of 4% a year. The required rate of return for this stock is 8%. Given these conditions, what is the estimated market value per share of this stock?
3. (common stock valuation, non-constant growth) You’ve discovered a company that is expected to pay $2.25 dividend at the end of this year. You estimate the company’s dividends will grow 10% next year and then at a constant rate of 4% thereafter. The required rate of return for this stock is 8%. Given these conditions, what is the estimated market value per share of this stock?
4. (Issues with the dividend growth model) What are three issues that must be dealt with when evaluating stocks with the dividend growth model?
5. (The PE model) Imagine you are estimating the market value of Wild West Oil Company’s stock, which is not publicly traded. So you decide to use the PE model for your valuation. You observe the following PE Ratio comparisons for your project:
Company PE Ratio (from the Internet)
a. Exxon-Mobil 10
b. Chevron 11
c. ConocoPhillips 14
a. What is the implied “appropriate” PE for Wild West Oil Company?
b. Assuming Wild West Oil Company’s EPS is = $3.10, what is your estimate for the market value of the company’s stock?
6. (Preferred stock valuation) You have discovered a company which has issued preferred stock with a stated annual dividend of 6% of its par value of $100. The average yield on preferred stock of this type among other companies is 7%. Given these conditions, what is your estimate of the market value of this company’s preferred stock?
|
The case for the contingent exclusionary rule
: Research and read the article by Donald Dripps entitled "The Case for the Contingent Exclusionary Rule," from the American Criminal Law Review (Winter, 2001). Based on the article and your current level of exposure to the topic of constitutional c..
|
|
Standard operating procedures
: Standard Operating Procedures-The following set of behaviors easily could be added to a department's standard operating procedures under the ethics category
|
|
Describe the scale of measurement of income
: Describe the scale of measurement of Income
|
|
How long victims can take before applying for reimbursement
: Although state victim compensation programs differ in the U.S., this aspect is the same across state lines: How long victims can take before applying for reimbursement The amount of money that victims can claim Whether victims of drunk driving crashe..
|
|
What is the estimated market value per share
: (Common stock valuation, constant growth) You’ve discovered a company that is expected to pay $2.25 dividend at the end of this year. The dividend is expected to grow forever at a constant rate of 4% a year. The required rate of return for this stoc..
|
|
Write essay about dialogue in constructivist science class
: Write an essay about Dialogue in the Constructivist Science Classroom. Dialogue is an excellent example of a pedagogical approach that is able to accommodate the needs of science teaching and learning.
|
|
What selling price per unit is necessary to achieve
: Question 1 (Break-even point and selling price) Parks Casting Inc. will manufacture and sell 210,000 units next year. Fixed costs will total $300,000 and variable costs will be 50 percent of sales.a. The firm wants to achieve a level of earning..
|
|
Which of these mixtures are heterogenous
: Which of these mixtures are heterogenous
|
|
Quick ratio formula
: The appendix containing a list and calculations of the ratios. A list of the calculations shown with formulas and the resulting answer.
|