Write in the value with two decimal points

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1. FUTUREDIV INC doesn't pay dividends now, but will pay a dividend of $3.2, 8 years from now and will increase dividends by 2.6% per year thereafter. If investors require a return of 13.6% on this stock, what is the value of the FUTUREDIV stock? Write in the value with two decimal points but no dollar sign or comma.

2. PREFERDIV INC's preferred stock pays a $2.93 dividend every quarter forever. If the stock currently sells for $36.69, what is the investors' required rate of return? Write in the value with 4 decimal points but no % sign. For example, if answer is 7.82%, write in 0.0782.

3. HYPERDIV INC is expected to pay the following large dividends in the next 3 years:

Year

Dividend

1

$1

2

$2

3

$4

After 3 years, the dividends will grow at 3% per year forever. If investors require a return of 9.3% on this stock, what is the value of the HYPERDIV stock? Write in the value with two decimal points but no dollar sign or comma

4.  ABC INC just paid a dividend of $2.48 and the dividends are expected to indefinitely grow at a constant 2.4% rate. If investors require a return of 13.5% from this stock, what is the value of the ABC stock? Write in the value with two decimal points but no dollar sign or comma.

5.  STARZ INC pays a constant dividend of $23 for next 12 years then will stop paying dividends forever. If investors require a return of 9.6% on this stock, what is the value of the STARZ stock? Write in the value with two decimal points but no dollar sign or comma.

Reference no: EM131419849

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