Screenshot 2023-12-01 101954

Suppose the risk-free rate is 3.62% and an analyst assumes a market risk premium of 6.27%. Firm A just paid a dividend of $1.04 per share. The analyst estimates the β of Firm A to be 1.33 and estimates the dividend growth rate to be 4.82% forever. Firm A has 268.00 million shares outstanding. Firm B just paid a dividend of $1.97 per share. The analyst estimates the β of Firm B to be 0.79 and believes that dividends will grow at 2.81% forever. Firm B has 185.00 million shares outstanding. What is the value of Firm A?

Suppose the risk-free rate is 3.91% and an analyst assumes a market risk premium of 6.52%. Firm A just paid a dividend of $1.11 per share. The analyst estimates the β of Firm A to be 1.20 and estimates the dividend growth rate to be 4.27% forever. Firm A has 264.00 million shares outstanding. Firm B just paid a dividend of $1.83 per share. The analyst estimates the β of Firm B to be 0.70 and believes that dividends will grow at 2.86% forever. Firm B has 197.00 million shares outstanding. What is the value of Firm B? Answer format: Currency: Round to: 2 decimal places.

Suppose the risk-free rate is 3.65% and an analyst assumes a market risk premium of 7.45%. Firm A just paid a dividend of $1.44 per share. The analyst estimates the β of Firm A to be 1.30 and estimates the dividend growth rate to be 4.34% forever. Firm A has 261.00 million shares outstanding. Firm B just paid a dividend of $1.71 per share. The analyst estimates the β of Firm B to be 0.83 and believes that dividends will grow at 2.92% forever. Firm B has 182.00 million shares outstanding. What is the value of Firm B? Answer format: Currency: Round to: 2 decimal places. $8,169,612,608.28 Answer should look something like this

Suppose the risk-free rate is 2.67% and an analyst assumes a market risk premium of 6.91%. Firm A just paid a dividend of $1.21 per share. The analyst estimates the β of Firm A to be 1.45 and estimates the dividend growth rate to be 4.46% forever. Firm A has 295.00 million shares outstanding. Firm B just paid a dividend of $1.75 per share. The analyst estimates the β of Firm B to be 0.89 and believes that dividends will grow at 2.83% forever. Firm B has 188.00 million shares outstanding. What is the value of Firm A? Answer format: Currency: Round to: 2 decimal places.

Suppose the risk-free rate is 2.61% and an analyst assumes a market risk premium of 6.65%. Firm A just paid a dividend of $1.19 per share. The analyst estimates the ẞ of Firm A to be 1.31 and estimates the dividend growth rate to be 4.79% forever. Firm A has 288.00 million shares outstanding. Firm B just paid a dividend of $1.89 per share. The analyst estimates the ẞ of Firm B to be 0.87 and believes that dividends will grow at 2.28% forever. Firm B has 196.00 million shares outstanding. What is the value of Firm B? Submit Answer format: Currency: Round to: 2 decimal places. Show Hint

Suppose the risk - free rate is 1.79% and an analyst assumes a market risk premium of 5.21%. Firm A just paid a dividend of $1.26 per share. The analyst estimates the \beta of Firm A to be 1.35 and estimates the dividend growth rate to be 4.25% forever. Firm A has 297.00 million shares outstanding. Firm B just paid a dividend of $1.81 per share. The analyst estimates the \beta of Firm B to be 0.77 and believes that dividends will grow at 2.21% forever. Firm B has 183.00 million shares outstanding. What is the value of Firm B?

Suppose the risk-free rate (RF) is 3.64% and an analyst assumes a market risk premium (Rm - Rf) of 7.50% . Firm A just paid a dividend of $1.05 per share (i.e. 1.05). The analyst estimates the beta of Firm A to be 1.49 and estimates the dividend growth rate to be 4.13% forever. Firm A has 2.2 million shares outstanding . What is the market value of the equity of Firm A?

Suppose the risk-free rate of return is 3.5 percent and the market risk premium is 7 percent. Stock U, which has a beta coefficient equal to 0.9%, is currently selling for $28 per share. The company is expected to grow at a 4 percent rate forever, and the most recent dividend paid to stockholders was $1.75 per share. Is Stock U correctly priced? Explain.

Suppose the risk-free rate of return is 3.5 percent and the market risk premium is 7 percent. Stock U, which has a beta coefficient equal to 0.9, is cur- rently selling for $28 per share. The company is expected to grow at a 4 percent rate forever, and the most recent dividend paid to stockholders was $1.75 per share. Is Stock U correctly priced? Explain. 8-19

11) Suppose that a company has just paid a dividend of $1.50 per share. Dividends are expected to grow at 4% per year forever. The market risk premium is 3% and the risk-free rate is 4%. The variance of the market portfolio is 0.15 and the covariance of the stock with the market portfolio is 0.30. What is the fair price of the stock? A. $22.28 B. $26 C. $34 D. $78

#29 Suppose the risk-free rate is 2.10% and an analyst assumes a market risk premium of 5.26%. Firm A just paid a dividend of $1.00 per share. The analyst estimates the B of Firm A to be 1.43 and estimates the dividend growth rate to be 4.28% forever. Firm A has 282.00 million shares outstanding. Firm B just paid a dividend of $1.91 per share. The analyst estimates the B of Firm B to be 0.90 and believes that dividends will grow at 2.00% forever. Firm B has 195.00 million shares outstanding. What is the value of Firm A? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity

A Company just paid a dividend of $0.65 per share, and that dividend is expected to grow at a constant rate of 4.75% per year in the future. The company's beta is 1.0, the market risk premium is 5.10%, and the risk-free rate is 2.25%. What is the company's current stock price, P 0? Do not round intermediate calculations.

29. Mackenzie Company has a price of $36 and will issue a dividend of $2.00 next year. It has a beta of1.2​, the​ risk-free rate is 5.5%​, and the market risk premium is estimated to be 5.0%.   a. Estimate the equity cost of capital for Mackenzie. What ___% b. Under the​ CDGM, at what rate do you need to expect​ Mackenzie's dividends to grow to get the same equity cost of capital as in part ​(a​)? What __%     **round to two decimal places**

Mackenzie Company has a price of $31 and will issue a dividend of $2.00 next year. It has a beta of 1.5, the risk-free rate is 5.4%, and the market risk premium is estimated to be 4.8%. a. Estimate the equity cost of capital for Mackenzie. b. Under the CDGM, at what rate do you need to expect Mackenzie's dividends to grow to get the same equity cost of capital as in part (a)?

please see attatched file

Mackenzie Company has a price of $32 and will issue a dividend of $2.00 next year. It has a beta of 1.1, the risk-free rate is 5.9%, and the market risk premium is estimated to be 4.8%. a. Estimate the equity cost of capital for Mackenzie. b. Under the CDGM, at what rate do you need to expect Mackenzie's dividends to grow to get the same equity cost of capital as in part (a)? a. Estimate the equity cost of capital for Mackenzie. The equity cost of capital for Mackenzie is %. (Round to two decimal places.)

Mackenzie Company has a price of $37 and will issue a dividend of $2.00 next year. It has a beta of 1.2, the risk-free rate is 5.4%, and the market risk premium is estimated to be 4.8%. a. Estimate the equity cost of capital for Mackenzie. b. Under the CDGM, at what rate do you need to expect Mackenzie's dividends to grow to get the same equity cost of capital as in part (a)? a. Estimate the equity cost of capital for Mackenzie. The equity cost of capital for Mackenzie is %. (Round to two decimal places.) b. Under the CGDM, at what rate do you need to expect Mackenzie's dividends to grow to get the same equity cost of capital as in part (a)? The expected growth rate for dividends is | %. (Round to two decimal places.)

Barton Industries estimates its cost of common equity by using three approaches: the CAPM, the bond-yield-plus-risk-premium approach, and the DCF model. Barton expects next year's annual dividend, D1, to be $2.40 and it expects dividends to grow at a constant rate gL = 5.8%. The firm's current common stock price, P0, is $21.00. The current risk-free rate, rRF, = 4.8%; the market risk premium, RPM, = 6.1%, and the firm's stock has a current beta, b, = 1.2. Assume that the firm's cost of debt, rd, is 10.57%. The firm uses a 4.1% risk premium when arriving at a ballpark estimate of its cost of equity using the bond-yield-plus-risk-premium approach. What is the firm's cost of equity using each of these three approaches? Do not round intermediate calculations. Round your answers to two decimal places. CAPM cost of equity:    % Bond-Yield-Plus-Risk-Premium:    % DCF cost of equity:    % If you are equally confident of all three methods, then what is the best estimate of the firm’s cost of…