FIN2030 Quantitative Assignment, Week 3 ( FIN 2030 week 3 Quantitative Assignment ) - 43791

Solution Detail
Price: $10.00
  • From: Finance,
  • Posted on: Wed 19 Feb, 2014
  • Request id: None
  • Purchased: 1 time(s)
  • Average Rating: No rating
Request Description

FIN2030 Quantitative Assignment, Week 3 (****** All 16 Answer 100% correctly Completed ******)



FIN2030 Quantitative Assignment, Week 3


1. Stock. What is the value of a stock with a a. $2 dividend just paid and an 8% required return with 0% growth? b. $3 dividend just paid and a 9% required return with 1% growth? c. $4 dividend to be paid and a 10% required return with 2% growth? d. $5 dividend to be paid and a 11% required return with 3% growth? 2. Stock. What is the required rate of return on a stock with a a. $1.5 expected dividend and a $19 price with 7% growth? b. $1.75 expected dividend and a $25 price with 8% growth? c. $2 expected dividend and a $26 price with 9% growth? d. $2.25 expected dividend and a $33 price with 10% growth? 3. Stock. What is the growth rate of the stock with a a. $2.50 expected dividend and a $30.60 price with 15% required return? b. $2 expected dividend and a $25.35 price with 12% required return? c. $3 expected dividend and a $10.40 price with 11% required return? d. $1.77 expected dividend and a $50.20 price with 14% required return? 4. Stock price. What is the value of a stock with high growth then constant growth, a. dividends of $1.50, $3.00, and $6.00, constant growth at 4% and a required return of 6%? b. dividends of $2.50, $3.50, and $5.00, constant growth at 3.5% and a required return of 8%? c. dividends of $1.50, $3.00, and $6.00, constant growth at 5% and a required return of 10%? d. dividends of $2.50, $3.50, and $5.00, constant growth at 7% and a required return of 12%?

 

The objectives of this assignment are:

1.     Determine the value of stocks: preferred and constant growth.

2.     Estimated the value of stock with high growth, and then estimate the value of stock with constant growth.

 

3.     Determine the components of stock valuation models



FIN2030 Quantitative Assignment, Week 3


1. Stock. What is the value of a stock with a

 

a. $2 dividend just paid and an 8% required return with 0% growth?

 

 

b. $3 dividend just paid and a 9% required return with 1% growth?

 

 

c. $4 dividend to be paid and a 10% required return with 2% growth?

 

 

d. $5 dividend to be paid and a 11% required return with 3% growth?

 

 

 

 

2. Stock. What is the required rate of return on a stock with a

 

a. $1.5 expected dividend and a $19 price with 7% growth?

 

 

b. $1.75 expected dividend and a $25 price with 8% growth?

 

 

c. $2 expected dividend and a $26 price with 9% growth?

 

 

d. $2.25 expected dividend and a $33 price with 10% growth?

 

 

 

 

3. Stock. What is the growth rate of the stock with a

 

a. $2.50 expected dividend and a $30.60 price with 15% required return?

 

 

b. $2 expected dividend and a $25.35 price with 12% required return?

 

 

c. $3 expected dividend and a $10.40 price with 11% required return? (Check these figures)

 

 

d. $1.77 expected dividend and a $50.20 price with 14% required return?

 

 

 

 

 

 

 

4. Stock price. What is the value of a stock with high growth then constant growth,

 

a. dividends of $1.50, $3.00, and $6.00, constant growth at 4% and a required return of 6%?

 

b. dividends of $2.50, $3.50, and $5.00, constant growth at 3.5% and a required return of 8%?

 

c. dividends of $1.50, $3.00, and $6.00, constant growth at 5% and a required return of 10%?

 

d. dividends of $2.50, $3.50, and $5.00, constant growth at 7% and a required return of 12%?

 

 

 

(Assumed Dividend given are Expected Dividend for D1,D2 & D3)

 

 

Solution Description

FIN

Attachments
FIN2030 Quantitative Assignment, Week 3 (All 16 Answer 100% correctly Completed).doc
FIN2030 Quantit...
FIN2030 Quantitative Assignment, Week 3 ( Excel Work Sheet).xls
FIN2030 Quantit...