Ryan Corporation expects to pay a dividend of $5 per share on its common stock at the end of thecurrent year. This dividend will then grow at 15% for the next 3 years, and after that the dividendswill continue to grow at a constant growth rate of 4% per year forever. If the company’s cost ofcommon stock is 14%, what is the price of Ryan’s stock today?Page 2 of 2

Rylan Industries is expected to pay a dividend of $5.00 year for the next four years. If the current price of Rylan stock is $31.38, and Rylan's equity cost of capital is 15%, what price would you expect Rylan's stock to sell for at the end of the four years? A. $83.78 B. $53.86 C. $23.94 D. $29.92

The FI Corporation's dividends per share are expected to grow indefinitely by 7% per year.  a. If this year's year-end dividend is $10.00 and the market capitalization rate is 12% per year, what must the current stock price be according to the DDM (round to 2 decimal places)? Current stock price $? b. If the expected earnings per share are $15.00, what is the implied value of the ROE on future investment opportunities (round to 2 decimal places)? Value of ROE ?% c. How much is the market paying per share for growth opportunities (i.e., for an ROE on future investments that exceeds the market capitalization rate) (round to 2 decimal places)? Amount $? per share

The FI Corporation's dividends per share are expected to grow indefinitely by 6% per year. Required: a. If this year's year-end dividend is $5.00 and the market capitalization rate is 10% per year, what must the current stock price be according to the DDM? Note: Round your answer to 2 decimal places. b. If the expected earnings per share are $10.00, what is the implied value of the ROE on future investment opportunities? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. c. How much is the market paying per share for growth opportunities (i.e., for an ROE on future investments that exceeds the market capitalization rate)? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a. Current stock price b. Value of ROE c. Amount % per share

General Motors expects to pay dividends of $7 this year and $9 next year, after that the company expects to grow at a 6% rate for the rest of its life.  What is the value of the stock if investors require an 11% return to purchase the stock?

Coolibah Holdings is expected to pay dividends of $1.30 every six months for the next three years. If the current price of Coolibah stock is $22.40, and Coolibah's equity cost of capital is 16%, what price would you expect Coolibah's stock to sell for at the end of three years? O A. $29.91 O B. $31.21 O C. $26.01 O D. $28.61

Suppose Acap Corporation will pay a dividend of $2.83 per share at the end of this year and $3.07 per share next year. You expect Acap's stock price to be $52.34 in two years. Assume that Acap's equity cost of capital is 10.7%. a. What price would you be willing to pay for a share of Acap stock today if you planned to hold the stock for two years? b. Suppose, instead, you plan to hold the stock for one year. For what price would you expect to be able to sell a share of Acap stock in one year? c. Given your answer in part b, what price would you be willing to pay for a share of Acap stock today if you planned to hold the stock for one year? How does this price compare to your answer in part a? a. If you planned to hold the stock for two years, the price you would pay for a share of Acap stock today is $ (Round to the nearest cent.)

You expect that four years from​ today, Sanibel Corporation will begin its​ first-ever dividend of​ $2.00 a​ share, an amount that will be held constant. If you require a rate of return of​ 7%, what is the most that you should be willing to pay today for a share of Sanibel​ Corp’s preferred​ stock?

Suppose Acap Corporation will pay a dividend of $2.81 per share at the end of this year and $2.97 per share next year. You expect​ Acap's stock price to be $51.74 in two years. Assume that​ Acap's equity cost of capital is 10.9%. a. What price would you be willing to pay for a share of Acap stock​ today, if you planned to hold the stock for two​ years? b. Suppose instead you plan to hold the stock for one year. For what price would you expect to be able to sell a share of Acap stock in one​ year? c. Given your answer in ​(b​), what price would you be willing to pay for a share of Acap stock today if you planned to hold the stock for one​ year? How does this compare to your answer in ​(a​)?

The FI Corporation's dividends per share are expected to grow indefinitely by 6% per year. a. If this year's year-end dividend is $8.00 and the market capitalization rate is 10% per year, what must the current stock price be according to the DDM? Current stock price b. If the expected earnings per share are $16.00, what is the implied value of the ROE on future investment opportunities? (Round your answer to 2 decimal places.) Value of ROE c. How much is the market paying per share for growth opportunities (i.e., for an ROE on future investments that exceeds the market capitalization rate)? (Round your answer to 2 decimal places.) Amount % per share