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1. Thress Industries just paid a dividend of $2.25 a share (i.e., D0 = $2.25). The dividend is expected to grow 5% a year for the next 3 years and then 12% a year thereafter. What is the expected dividend per share for each of the next 5 years? Round your answers to the nearest cent. D1 = $ D2 = $ D3 = $ D4 = $ D5 = $

2. Boehm Incorporated is expected to pay a $3.60 per share dividend at the end of this year (i.e., D1 = $3.60). The dividend is expected to grow at a constant rate of 7% a year. The required rate of return on the stock, rs, is 17%. What is the value per share of Boehm's stock? Round your answer to the nearest cent. '

3. Nick's Enchiladas Incorporated has preferred stock outstanding that pays a dividend of $3 at the end of each year. The preferred sells for $30 a share. What is the stock's required rate of return (assume the market is in equilibrium with the required return equal to the expected return)? Round the answer to two decimal places.

4. A company currently pays a dividend of $1 per share (D0 = $1). It is estimated that the company's dividend will grow at a rate of 17% per year for the next 2 years, then at a constant rate of 6% thereafter. The company's stock has a beta of 1.6, the risk-free rate is 6%, and the market risk premium is 5%. What is your estimate of the stock's current price? Round your answer to the nearest cent

5. Current and projected free cash flows for Radell Global Operations are shown below. Actual 2013 2014 Projected 2015 2016 Free cash flow $608.40 $669.08 $709.13 $765.86 (millions of dollars) Growth is expected to be constant after 2015, and the weighted average cost of capital is 10.05%. What is the horizon (continuing) value at 2016 if growth from 2015 remains constant? Round your answer to the nearest dollar. Round intermediate calculations to two decimal places.

6. Crisp Cookware's common stock is expected to pay a dividend of $2 a share at the end of this year (D1 = $2.00); its beta is 0.90; the risk-free rate is 5.2%; and the market risk premium is 6%. The dividend is expected to grow at some constant rate g, and the stock currently sells for $25 a share. Assuming the market is in equilibrium, what does the market believe will be the stock's price at the end of 3 years (i.e., what is )? Do not round intermediate steps. Round your answer to the nearest cent.

7. What is the required rate of return on a preferred stock with a $50 par value, a stated dividend of 10% of par, and a current market price of (a) $51, (b) $83, (c) $119, and (d) $148 (assume the market is in equilibrium with the required return equal to the expected return)? Round the answers to two decimal places. % % % %

Financial Management, Finance

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