Reference no: EM132892658
Questions -
Q1. A company expects to pay a dividend of $3.50 per share next year. If the required return is 8% and the growth rate of dividends is 2%, what is the intrinsic value of the stock?
Q2. A company's ROE is 12%, the dividend payout ratio is 35%, EPS this past year was $5.00, and the required return on the stock is 15%. What is intrinsic value?
Q3. EPS next year is $6.00, the retention ratio is 60%, the required return on the stock is 10%, ROE is 14%, and the price of the stock is $150. How much of the stock price is related to the PVGO?
Q4. A stock paid a dividend this year of $1.25. Dividends are expected to grow at a rate of 15% over the next 4 years, then slow to 5% thereafter. If the required rate of return is 9%, what is the intrinsic value of the stock?
Q5. The EBIT of a firm is $300, the tax rate is 35%, the depreciation is $20, capital expenditures are $60, and the increase in net working capital is $30. What is the free cash flow to the firm?