4. XYZ Corporation expects to pay dividend of $1.00 next year. The corporation forecasts that the dividend will grow 10% in year 2, 20% in year 3, -10% in year 4, 15% in year 5, and after that at 3% constant rate. The risk free is now 3.50%, the rate of return on the market is 7.50%. The corporation's beta is 0.75. a. Calculate required rate of return of ABC Corporation. b. Calculate the stock price of the firm.

You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $2.75 a share at the end of the year (D1 = $2.75) and has a beta of 0.9. The risk-free rate is 5.1%, and the market risk premium is 6%. Justus currently sells for $41.00 a share, and its dividend is expected to grow at some constant rate, g. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years? (That is, what is ?) Do not round intermediate calculations. Round your answer to the nearest cent.

7. The firm expects earnings and dividends to grow at a rate of 25% 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, Do, was P 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? a. P 26.77 c. P 27.89 f. P42.35 b. P 29.05 d. P 30.21 8. The firm's last dividend was P 1.75. Its dividend growth rate is expected to be constant at 25% for 2 years, after which dividends are expected to grow at a rate of 6% forever. Its required return (r.) is 12%. What is the best estimate of the current stock price? e. P31.42

Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.4% rate of inflation in the future. The real risk-free rate is 2.0%, and the market risk premium is 6.0%. Mudd has a beta of 1.5, and its realized rate of return has averaged 9.0% over the past 5 years. Round your answer to two decimal places.