Given the following information what is the stock price of Firm X Expected

Given the following information what is the stock

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1.Given the following information, what is the stock price of Firm X? 2. If a firm does not pay a dividend, the constant growth model can still be used as long as __________. this model cannot be used without a dividend 3. Given the following information, compute the expected return on Firm X: Dividend for the next period: $1.23 Current stock price: $22.50 Growth rate: 4.75% $10.22 4. Given a growth rate of 4%, a dividend that is forecasted to be $1.50 next year, and an expected return of 11%, what is the numerator of the constant growth model? $1.50 5. Given the following information, what is the cost of equity for the constant growth model? 6. Given a growth rate of 5%, a current dividend of $1.50, and an expected return of 12%, what is the numerator of the constant growth model? $1.58 7. Given the following information, what is the stock price of Firm X?
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8. The perpetual growth rate assumption in the model is __________. Not reasonable 9. To solve for the cost of capital, the constant growth model can be manipulated into which of the following? = D1/P0+g 10. Given a growth rate of 4%, a dividend that is forecasted to be $1.50 next year, and an expected return of 11%, what is the numerator of the constant growth model? $1.50 11. The constant growth model will likely be most appropriate for __________. Mature firms
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