Question 29 (1 point) You forecast a company's dividends for the next three years. In Year...

Question 29 (1 point) You forecast a company's dividends for the next three years. In Year 1, you expect to receive $2.00 in dividends. In Year 2, you expect to receive $2.50 in dividends. In Year 3, you expect to receive $3.00 in dividends. After Year 3, dividends are expected to grow at 2%. The rate of return for similar risk common stock is 15%. What is the current value of this company's stock?

Question 30 (1 point) Amazon has an expected return of 15% and Tesla has an expected return of 20%. What is the expected return of a portfolio that is composed of 90% in Amazon and 10% in Tesla.

Question 31 (1 point) The bonds of Greedo Corp. carry a 3% coupon rate and mature in 12 years. Bonds of equivalent risk yield 3%. What is the market value of Greedo Corp's bonds?

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 2 years ago

You forecast a company's dividends for the next four years. In Year 1, you expect to...

You forecast a company's dividends for the next four years. In Year 1, you expect to receive $1.00 in dividends. In Year 2, you expect to receive $1.10 in dividends. In Year 3, you expect to receive $1.20 in dividends. In Year 4, you expect to receive $1.30. After Year 4, dividends are expected to grow at 2%. The rate of return for similar risk common stock is 7%. What is the current value of this company's stock?

XYZ has the following dividend forecast for the next three years: Year 1 2 3 Expected...

XYZ has the following dividend forecast for the next three years: Year 1 2 3 Expected Dividend $1.00 2.00 2.50 After the third year, the dividend will grow at a constant rate of 5 percent per year. The required return is 10 percent. What is the value of the stock today?

Assume that dividends in the next three years (starting from year 2017) will grow at a...

Assume that dividends in the next three years (starting from year 2017) will grow at a rate of 13% annually. Further, it is assumed that dividends will grow at a rate of 11% for the next four years (year 4 to 7). Thereafter it is assumed that the company will grow at a constant growth rate of 7% per annum. The last dividend paid (for 2016) is $1.52. Assume a required rate of return of 12%. Clearly show the following:...

A firm is expected to pay dividends by 20% in year 1, 15% for the next three consecutive years, and then the dividends will increase by 5% forever.

A firm is expected to pay dividends by 20% in year 1, 15% for the next three consecutive years, and then the dividends will increase by 5% forever. calculate the value of the stock today. the most recently paid dividend was $2 and the required rate of return is 12%.a) 47.38b) 74.39c) 43.70d) 34.69e) 28.69

You expect the Cochese Limited Group to increase dividends 20% for the next three years. Thereafter,...

You expect the Cochese Limited Group to increase dividends 20% for the next three years. Thereafter, g will settle to its long-run growth rate of 5%. If the required rate of return on the stock is 10% and the company just paid a dividend of $3.50, what is the current stock price? Include a timeline showing dividend payments in periods 1-4. c) Assuming that you are correct about the Cochese Group dividend payout, what do you expect next period’s stock...

McGaha Enterprises expects earnings and dividends to grow at a rate of 29% for the next...

McGaha Enterprises expects earnings and dividends to grow at a rate of 29% for the next 4 years, after the growth rate in earnings and dividends will fall to zero, i.e., g = 0. The company's last dividend, D0, was $1.25, its beta is 1.20, the market risk premium is 5.50%, and the risk-free rate is 3.00%. What is the current price of the common stock?

Suppose a company’s expected dividends are $1.80, $2.79, and $3.14 for the next three years and...

Suppose a company’s expected dividends are $1.80, $2.79, and $3.14 for the next three years and are expected to grow at a constant rate of 1.82% per year thereafter. What should the current value of the stock if the required rate of return is 5.66%? Round your answer to 2 decimal places. (For example 6.798 = 6.80)

Suppose you receive $160 at the end of each year for the next three years. a....

Suppose you receive $160 at the end of each year for the next three years. a. If the interest rate is 8%, what is the present value of these cash flows? b. What is the future value in three years of the present value you computed in(a)? c. Suppose you deposit the cash flows in a bank account that pays 8% interest per year. What is the balance in the account at the end of each of the next three...

Suppose you receive $100 at the end of each year for the next three years. a....

Suppose you receive $100 at the end of each year for the next three years. a. If the interest rate is 8% per annum (interest paid annually), what is the present value of these cash flows? b. What is the future value in three years of the present value you computed in part (a)? c. Assume that no withdrawals are made from the savings account until the end of the third year. What is the interest component? d. Compute the...

Suppose you receive $100100 at the end of each year for the next three years. a....

Suppose you receive $100100 at the end of each year for the next three years. a. If the interest rate is 9 %9%, what is the present value of these cash flows? b. What is the future value in three years of the present value you computed in (a)? c. Suppose you deposit the cash flows in a bank account that pays 9 %9% interest per year. What is the balance in the account at the end of each of...

Question