1) ABC Inc.'s stock is currently selling for $75.46 per share. The company just paid its first annual dividend of $2.94 a share. The firm plans to increase the dividend by 7.4 percent per year indefinitely. What is the required rate of return on equity?
Enter your answer in percentages rounded off to two decimal points.
2) The terms of sale are 5/5, net 43. What is the effective annual rate of interest?
Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.
3) ABC’s last dividend paid was $5.21, its required return is 24%, its growth rate is 4%. What is ABC's expected stock price in 6 years?
Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
4) ABC Inc. last paid an annual dividend of $20.7.The dividends are expected to grow by 9.3% each year. What is the amount of expected dividend in Year 3. That is, what is D3?
Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.