Q4. Firm DEF has just paid a quarterly dividend of $3.75. Dividends are expected to grow by 10% for the next 4 quarters, and then grow by 1.4% thereafter. Firm DEF has a required quarterly return of 5%. Show all work for each part of the problem that requires computation. a) What is the expected dividend in four quarters? b) What is the horizon value in the fourth quarter (P4)? c) What is the intrinsic value of the stock today? d) How would you critique the model you used for calculating the intrinsic value? In other words, what are its shortcomings, if any?

Suppose you invest $350 in a CD with an APR of 2.9% compounded daily. Match each expression with what it represents in this context. 0.029 . 100 365 0.029 1+ 365 365(11) 365 0.029 1+ 365 0.029 365 (11) 1+ 365 365 0.029 1+ 100 365 a. The 11-year growth factor b. The number of times interest is compounded in 11 years c. The daily growth factor d. The daily percent change e. None of these. f. The annual growth factor

H3. Capello's Deli traditionally pays an annual dividend of $1.65 per share. The firm is projecting dividends of $1.80 and $2.05 over the next two years, respectively. After that, the company expects to pay a constant dividend of $2.25 a share. What is the maximum amount you are willing to pay for one share of this stock if your required return is 10 percent?    Please show proper step by step calculation

You are running a Data Analysis Company. You predict that the earnings will grow at 2% per year forever. Your company has just announced earnings of $6.5 million. What is the present value of all future earnings if the interest rate is 9% per year? (Assume all cash flows occur at the end of the year)

Over the next three years, the company Paris is expected to pay dividends as follows: Time 1 2 3 Dividend 15 20 24 Thereafter, Paris dividends are expected to grow at a constant rate of 5% per year. Paris should reinvest 40% of its benefits from T = 2. The expected return regarding Paris stocks is 15% Calculate the stock price at the end T 2. If Paris keeps 40% of its EPS to reinvest in new projects, what must be the retum rate of new investments in order to achieve the dividend growth of 5%? What is the stock price today? If Paris changes its dividend distribution policy and decides to distribute all its benefits to its shareholders from T 3, what would be the impact of this policy on the stock price? Comment on the result.

Planned Obsolescence has a product that will be in vogue for 3 years, at which point the firm will close up shop and liquidate the assets. As a result, forecast dividends are  DIV1 = $7.00, DIV2 = $7.50, and DIV3 = $23.00. What is the stock price if the discount rate is 11%