ABC Enterprises stock currently sells for $40.50 per share. The dividend is projected to increase...
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Finance
ABC Enterprises stock currently sells for $40.50 per share. The dividend is projected to increase at a constant rate of 5.50% per year. The required rate of return on the stock, r, is 9.00%. What is the stock's expected price 4 years from today?
a. $43.75
b. $58.02
c. $47.56
d. $50.17
e. $52.79
How much would $5,500 due in 100 years be worth today if the discount rate were 5.5%?
a. $21.75
b. $26.01
c. $20.81
d. $25.77
e. $23.64
Tron Inc's CFO hired you as a consultant to help her estimate the cost of capital. You have been provided with the following data:
rRF = 5.10%
RPM = 5.25%
b= 1.15
Based on the CAPM approach, what is the cost equity from retained earnings?
a. 11.14%
b. 8.62%
c. 12.67%
d. 12.27%
e. 10.14%
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