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- Suppose you are told that returns on Treasury Bills are currently at 5% and the market returns is 12%. The beta value for Cilly Bhd is 1.2. a) What is expected required rate of return on investment for Cilly Bhd? b) If Cilly Bhd is forecast to pay next year's dividends of RM 1.50 per share and that the annual dividend growth rate is 8% p.a., what is the expected share price of Cilly Bhd?16) Suppose Bank is trading share at 17$ today. The company pays dividend of 0.25. The analysts claimed that in one year, target price will be 32$. What is the expected return?Suppose Kaspi Bank is trading share at 25$ today. The company pays dividend of 0.25. The analysts claimed that in one year, target price will be 32$. What is the expected return?
- Mackenzie Company has a price of $31 and will issue a dividend of $2.00 next year. It has a beta of 1.5, the risk-free rate is 5.4%, and the market risk premium is estimated to be 4.8%. a. Estimate the equity cost of capital for Mackenzie. b. Under the CDGM, at what rate do you need to expect Mackenzie's dividends to grow to get the same equity cost of capital as in part (a)?Mackenzie Company has a price of $37 and will issue a dividend of $2.00 next year. It has a beta of 1.2, the risk-free rate is 5.4%, and the market risk premium is estimated to be 4.8%. a. Estimate the equity cost of capital for Mackenzie. b. Under the CDGM, at what rate do you need to expect Mackenzie's dividends to grow to get the same equity cost of capital as in part (a)? a. Estimate the equity cost of capital for Mackenzie. The equity cost of capital for Mackenzie is %. (Round to two decimal places.) b. Under the CGDM, at what rate do you need to expect Mackenzie's dividends to grow to get the same equity cost of capital as in part (a)? The expected growth rate for dividends is | %. (Round to two decimal places.)Mackenzie Company has a price of $32 and will issue a dividend of $2.00 next year. It has a beta of 1.1, the risk-free rate is 5.9%, and the market risk premium is estimated to be 4.8%. a. Estimate the equity cost of capital for Mackenzie. b. Under the CDGM, at what rate do you need to expect Mackenzie's dividends to grow to get the same equity cost of capital as in part (a)? a. Estimate the equity cost of capital for Mackenzie. The equity cost of capital for Mackenzie is %. (Round to two decimal places.)
- 1. The firm is expected to pay a dividend of D, = P1.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 4.50% per year in the future. The firm's beta is 1.25, the market risk premium is 6.50%, and the risk-free rate is 4.00%. What is the firm's current stock price? a. P17.13 d. P 19.23 b. Р16.39 е. Р31.90 с. Р32.68 f. P 20.10 2. The firm just paid a dividend of D, = P 0.75 per share, and that dividend is expected to grow at a constant rate of 5.50% per year in the future. The firm's beta is 1.15, the required return on the market is 9.50%, and the risk-free rate is 4.50%. What is the firm's current stock price? a. P7.97 d. P 5.64 b. Р15.21 е. Р6.59 c. P16.79 f. P16.65The common stock of Tomorrow, Inc. is selling for P28.75 in the open market. A dividend of P2.86 is expected to distributed and the growth rate of this company is estimated to be 6%. If Franz Babe, an average investor, is considering purchasing this stock at the market price, what is the expected rate of return?A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per share and sells for $56. Required: a. What is the total rate of return on the stock? b. What are the dividend yield and percentage capital gain? c. Now suppose the year-end stock price after the dividend is paid is $48. What are the dividend yield and percentage capital gain in this case? A Required What is the total rate of return for the stock? B Required What is the dividend yield and percentage capital gain? C Required Now suppose the year-end stock price after the dividend is paid is $48. What are the dividend yield and percentage capital gain in this case? (Negative amounts should be indicated by a minus sign. Enter your answers as a whole percent.)
- Birkin Systems is expected to pay a dividend of D1 = $2.00 per share at the end of the year, and that dividend is expected to grow at a constant rate of 5.00% per year in the future. The company's beta is 1.2, the Market Risk Premium is 6.00%, and the risk-free rate is 4.00%. What is the company's current stock price? (Ch. 9) Group of answer choices 40.00 27.42 32.26 35.48 33.33Suppose Lilly V, Inc. has just paid a dividend. The next dividend, to be paid in a year, is forecasted to be $4. If the growth rate of dividends is 7% and the discount rate is 11%, at what price will the stock sell? a.Less than $100 b.More than $100 c.$100 d.$111A company has just paid a dividend of 3.68$. Its discount rate is 11.2%, and the expected perpetual growth rate is 4.2%. What is the stock's Capital Gain Yield?
