3. A financial analyst recommends purchasing DUDDZ, Inc. at $24.49. The stock pays a $1.60 dividend...

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3. A financial analyst recommends purchasing DUDDZ, Inc. at$24.49. The stock pays a $1.60 dividend which is expected to growannually at 4 percent. If you want to earn 10 percent on yourfunds, is this a good buy based on the dividend-growth model?
4. If the risk-free rate is 2.3 percent and the anticipatedreturn on the market is 9.0 per-cent, what is the value of thestock in Problem 1, if the beta coefficient is 0.92?
5. If the risk-free rate is 2.3 percent and the anticipatedreturn on the market is 9.0 per-cent, what is the value of thestock in Problem 1 if the beta coefficient is 1.23
6. Given the following information, compute the followingratios: price/earnings, price/ book, price/sales, and PEG.
Sales $10,000
Earnings $1,500
Total assets $5,000
Equity $2,000
Number of shares outstanding1,000
Estimated growth rate of earnings 6%
Price of the stock $20

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3. A financial analyst recommends purchasing DUDDZ, Inc. at$24.49. The stock pays a $1.60 dividend which is expected to growannually at 4 percent. If you want to earn 10 percent on yourfunds, is this a good buy based on the dividend-growth model?4. If the risk-free rate is 2.3 percent and the anticipatedreturn on the market is 9.0 per-cent, what is the value of thestock in Problem 1, if the beta coefficient is 0.92?5. If the risk-free rate is 2.3 percent and the anticipatedreturn on the market is 9.0 per-cent, what is the value of thestock in Problem 1 if the beta coefficient is 1.236. Given the following information, compute the followingratios: price/earnings, price/ book, price/sales, and PEG.Sales $10,000Earnings $1,500Total assets $5,000Equity $2,000Number of shares outstanding1,000Estimated growth rate of earnings 6%Price of the stock $20