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- 1. Todd Mountain Development Corporation is expected to pay a dividend of $4 in the upcoming year. Dividends are expected to grow at the rate of 13% per year. The risk-free rate of return is 10%, and the expected return on the market portfolio is 20%. The stock of Todd Mountain Development Corporation has a beta of 0.80. Using the constant-growth DDM, the intrinsic value of the stock is A. 13.00 B. 12.90 C. 30.77 D. 80.00KDP’s most recent dividend was $2 per share and is selling today in the market for $70. The dividend is expected to grow at a rate of 7% per year for the foreseeable future. If the market return is 10% on investments with comparable risk, should you purchase the stock? answer is 71.33Whited Inc.'s stock currently sells for $26.25 per share. The dividend is projected to increase at a constant rate of 4.00% 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. $27.30 b. $45.24 c. $29.27 d. $37.69 e. $31.94
- A company currently pays a dividend of $3.2 per share (D0 = $3.2). It is estimated that the company's dividend will grow at a rate of 24% per year for the next 2 years, and then at a constant rate of 7% thereafter. The company's stock has a beta of 1.2, the risk-free rate is 9%, and the market risk premium is 5.5%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent.(Common stock valuation) The common stock of NCP paid $1.29 in dividends last year. Dividends are expected to grow at an annual rate of 6.60 percent for an indefinite number of years. a. If your required rate of return is 9.20 percent, what is the value of the stock for you? b. Should you make the investment?NEED ALL... Caramel Corporation is expected to pay quarterly dividends (starting in three months) of $0.45 per share. The dividend amount is expected to remain constant for the foreseeable future. Given the risk inherent in Caramel shares, the required expected return for investors is 12% per year (effective). a) Using the dividend-discount model, what would be the price of one share of Caramel stock? b) What would be the price of one share of its stock if the next dividend is in one month, not three months? c) Say the next dividend is in 3 months, as in part a). If dividends are expected to grow at a rate of 1% per quarter, what would be the price
- Franklin Corporation is expected to pay a dividend of $1.25 per share at the end of the year (D1 = $1.25). The stock sells for $32.50 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate? a. 6.01% b. 6.17% c. 6.33% d. 6.49% e. 6.65%EMKA corporation is going to pay a dividend of $1.5, $2, and $2.5 each year for the next three years. Afterwards, it is planing to increas the dividends at a constant rate of 10% indifinitely. How much should the stock be sold for if the required rate of return is 12%? Select one: a.$104.17 b.$102.59 c.$100.01 d.$105.64Miltmar Corporation will pay a year-end dividend of $4, and dividends thereafter are expected to grow at the constant rate of 6% per year. The risk-free rate is 5%, and the expected return on the market portfolio is 10%. The stock has a beta of 0.66.Required: a. Calculate the market capitalization rate. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What is the intrinsic value of the stock?
- Miltmar Corporation will pay a year-end dividend of $4, and dividends thereafter are expected to grow at the constant rate of 4% per year. The risk-free rate is 4%, and the expected return on the market portfolio is 12%. The stock has a beta of 0.75 Required: a. Calculate the market capitalization rate. (Do not round intermediate calculations.) Market capitalization rate % 4 b. What is the intrinsic value of the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Intrinsic valueTorrance Glassware is expected to pay a dividend of D₁ = $1.45 per share at the end of the year, and that dividend is expected to grow at a constant rate of 5.80% per year in the future. The company's beta is 1.16, the market risk premium is 5.35%, and the risk-free rate is 3.90%. What is Torrance's current stock price? $33.67 $34.39 $35.13 $35.89 O $36.82Birkin Systems is expected to pay a dividend of D1 = $2.00 per share at the end of the year, and that dividend is expected to grow at a constant rate of 5.00% per year in the future. The company's beta is 1.2, the Market Risk Premium is 6.00%, and the risk-free rate is 4.00%. What is the company's current stock price? (Ch. 9) Group of answer choices 40.00 27.42 32.26 35.48 33.33