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Assume that your company has the cost of equity of 3% (for the purpose of preventing error carried forward. Go back to your Excel or your solutions to ust change the cost of equity to 8%, instead of what you got from the previous part.) What is the stock valuation assuming 4% constant growth rate of dividends? Tyne your answer

Assume that your company has the cost of equity of 3% (for the purpose of preventing error carried forward. Go back to your Excel or your solutions to ust change the cost of equity to 8%, instead of what you got from the previous part.) What is the stock valuation assuming 4% constant growth rate of dividends? Tyne your answer

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Solve with data given.
Date 3/13/17 6/13/17 9/14/17 11/30/17 3/14/18 6/14/18 9/13/18 11/29/18 3/14/19 6/13/19 9/13/19 11/29/19 3/13/20 6/12/20 9/14/20 11/30/20 3/12/21 6/14/21 9/14/21 11/30/21 Dividends 0.37 0.37 0.37 0.37 0.39 0.39 0.39 0.39 0.4 0.4 0.4 0.4 0.41 0.41 0.41 0.41 0.42 0.42 0.42 0.42 1.48 1.56 0.05405 1.6 0.02564 1.64 0.025 1.68 0.02439 0.03227 g D1 ΡΟ 0.03227 1.73422 26.78 Cost Of Equ 0.0970?
Transcribed Image Text:Date 3/13/17 6/13/17 9/14/17 11/30/17 3/14/18 6/14/18 9/13/18 11/29/18 3/14/19 6/13/19 9/13/19 11/29/19 3/13/20 6/12/20 9/14/20 11/30/20 3/12/21 6/14/21 9/14/21 11/30/21 Dividends 0.37 0.37 0.37 0.37 0.39 0.39 0.39 0.39 0.4 0.4 0.4 0.4 0.41 0.41 0.41 0.41 0.42 0.42 0.42 0.42 1.48 1.56 0.05405 1.6 0.02564 1.64 0.025 1.68 0.02439 0.03227 g D1 ΡΟ 0.03227 1.73422 26.78 Cost Of Equ 0.0970?
Assume that your company has the cost of equity of 8% (for the purpose of preventing error carried forward. Go back to your Excel or your solutions to just change the cost of equity to 8%, instead of what you got from the previous part.) What is the stock valuation assuming zero-growth dividends? Type your answer... Assume that your company has the cost of equity of 8% (for the purpose of preventing error carried forward. Go back to your Excel or your solutions to just change the cost of equity to 8%, instead of what you got from the previous part.) What is the stock valuation assuming 4% constant growth rate of dividends? Type your answer... Assume that your company has the cost of equity of 8% (for the purpose of preventing error carried forward. Go back to your Excel or your solutions to just change the cost of equity to 8%, instead of what you got from the previous part.) What is the stock valuation assuming 2% second-stage growth rate? Type your answer...
Transcribed Image Text:Assume that your company has the cost of equity of 8% (for the purpose of preventing error carried forward. Go back to your Excel or your solutions to just change the cost of equity to 8%, instead of what you got from the previous part.) What is the stock valuation assuming zero-growth dividends? Type your answer... Assume that your company has the cost of equity of 8% (for the purpose of preventing error carried forward. Go back to your Excel or your solutions to just change the cost of equity to 8%, instead of what you got from the previous part.) What is the stock valuation assuming 4% constant growth rate of dividends? Type your answer... Assume that your company has the cost of equity of 8% (for the purpose of preventing error carried forward. Go back to your Excel or your solutions to just change the cost of equity to 8%, instead of what you got from the previous part.) What is the stock valuation assuming 2% second-stage growth rate? Type your answer...
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