Question Details

Francis Inc.'s stock 





1. Goode Inc.'s stock has a required rate of return of 11.50%, and it sells for P25.00 per share.  Goode's dividend is expected to grow at a constant rate of 7.00%.  What was the last dividend, D0?
 
a.	P0.95
b.	P1.05
c.	P1.16
d.	P1.27
 

2.	Francis Inc.'s stock has a required rate of return of 10.25%, and it sells for P57.50 per share.  The dividend is expected to grow at a constant rate of 6.00% per year.  What is the expected year-end dividend, D1?
 
a.	P2.20
b.	P2.44
c.	P2.69
d.	P2.96
 

3.	Sorenson Corp.- expected year-end dividend is D1 = P1.60, its required return is rs = 11.00%, its dividend yield is 6.00%, and its growth rate is expected to be constant in the future.  What is Sorenson's expected stock price in 7 years, i.e., what is  ?
 
a.	P37.52
b.	P39.40
c.	P41.37
d.	P43.44
 

4.	The Francis Company is expected to pay a dividend of D1 = P1.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in the future.  The company's beta is 1.15, the market risk premium is 5.50%, and the risk-free rate is 4.00%.  What is the company's current stock price?
 
a.	P28.90
b.	P29.62
c.	P30.36
d.	P31.12
 

5.	The Isberg Company just paid a dividend of P0.75 per share, and that dividend is expected to grow at a constant rate of 5.50% per year in the future.  The company's beta is 1.15, the market risk premium is 5.00%, and the risk-free rate is 4.00%.  What is the company's current stock price, P0?
 
a.	P18.62
b.	P19.08
c.	P19.56
d.	P20.05
 

6.	Whited Inc.'s stock currently sells for P35.25 per share.  The dividend is projected to increase at a constant rate of 4.75% per year.  The required rate of return on the stock, rs, is 11.50%.  What is the stock's expected price 5 years from now?
 
a.	P40.17
b.	P41.20
c.	P42.26
d.	P44.46
 


Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help