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1. ABC's last dividend paid was $2.5, its required return is 22%, its growth rate is 4%. What is ABC's expected stock price in 9 years?
2. ABC Company has the following projected sales:
Month
Sales
June $2,450
July $8,198
August $18,683
September
$28,120
34% of the sales are collected in the same month.
16% of the sales are collected after one month,
20% of the sales are collected after two months, and
the remainder are collected after three month.
What is the amount of the September collections?
3. ABC Company has projected Sales of $14,741 in January. The sales are expected to grow by 10% each month. ABC's collection schedule is as follows:
ABC collects 21 percent of its sales in the month of sale and the remainder is collected in the following month. What is the amount of the April cash collections?
4. ABC Company's last dividend was $0.8. The dividend growth rate is expected to be constant at 6% for 4 years, after which dividends are expected to grow at a rate of 4% forever. The firm's required return (rs) is 18%. What is its current stock price (i.e. solve for Po)?