Business Question

1. ABC, Inc. is expected to pay dividends of $26.89 each year infinitely. If the required rate on the stock is 7.3%, what is today’s price of the stock? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. 2. ABC, Inc. just paid dividend of $3.48. The dividends are expected to grow at 4.79% each year forever. The required rate of return on the stock is 25%. What is today’s price of the stock? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. 3. XYZ, Inc. just paid dividend of $11.28. The dividends are expected to grow at 3.93% each year forever. The required rate of return on the stock is 17.85%. What is today’s price of the stock? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. 4. ABC. Inc is expected to pay a dividend of $16.67 per share. The dividends are expected to increase by 4% each year. The required rate of return on the stock is 15%. What is the stock’s expected price 12 years from today (i.e., what is P12)? 5. XYZ stock is currently selling for $50.47 per share. The company just paid its first annual dividend of $4.3 a share. The firm plans to increase the dividend by 3.9 percent per year indefinitely. What is the expected return on XYZ stock? Enter your answer in percentages rounded off to two decimal points. 6. Suppose a company just paid dividend of $3.33. The dividend is expected to grow at 1.17% each year. If the stock is currently selling for $330.21, what is the dividend yield? Enter your answer as a percentage rounded off to two decimal points. Do not enter % in the answer box. 7. ABC,. Inc just paid a dividend of $13.42. The dividends are expected to grow by 15% in Years 1-4. After that, the dividends are expected to grow by 1% each year. If the required rate of return is 23%, what is today’s price of the stock? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. 8. ABC,. Inc just paid a dividend of $11.33. The dividends are expected to grow by 19% in Year 1, 17% in Year 2, and 8% in Year 3. After that, the dividends are expected to grow by 8% each year. If the required rate of return is 21%, what is today’s price of the stock? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.