Reference no: EM132443093

Question 1: Suppose Nabisco Corporation just issued a dividend of $1.87 per share yesterday. Subsequent dividends will grow at a constant rate of 7% indefinitely. If the required rate of return for this stock is 17.8%, what is the value of a share of common stock today?

Question 2: What is the value of a share of preferred stock that promises to pay $1.3every year,indefinitely, if you have a required rate of return of 12.1%?

Question 3: The current price of Janco stock is $29.96. Dividends are expected to grow at 5.4% indefinitely and the most recent dividend paid yesterday was $3.38. What is the required rate of return, dividend yield, and capital gains yield on Janco's stock? (show your answers to 4 decimal places. DO NOT round until after all calculations have been completed and you have reached your final answer. If your answer ends in a zero, only include 1 decimal place and omit the zero. If the answer ends in two zeros after rounding, do not use any decimal places as ANGEL does not recognize the ".00" endings and will remove points from your score.)

Question 4: Magnetic Corporation expects dividends to grow at a rate of 15.9% for the next two years. After two years dividends are expected to grow at a constant rate of 3.4%, indefinitely. Magnetic's required rate of return is 12.9% and they paid a $2.72 dividend today. What is the value of Magnetic Corporation's common stock per share? (Show your answers to the nearest cent. Round your answer to the nearest 2 decimal places. DO NOT round until after all calculations have been completed and you have reached your final answer. If your answer ends in a zero, only include 1 decimal place and omit the zero. If the answer ends in two zeros after rounding, do not use any decimal places as ANGEL does not recognize the ".00" endings and will remove points from your score.)