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- The Duo Growth Company just paid a dividend of $1.00 per share. The dividend is expected to grow at a rate of 24% per year for the next three years and then to level off to 5% per year forever. You think the appropriate market capitalization rate is 19% per year. a. What is your estimate of the intrinsic value of a share of the stock? (Use intermediate calculations rounded to 4 decimal places. Round your answer to 2 decimal places.) Answer is complete and correct. Intrinsic value per share b. If the market price of a share is equal to this intrinsic value, what is the expected dividend yield? (Use intermediate values rounded to 2 decimal places. Round your answer to 2 decimal places.) Expected dividend yield $ Expected price 11.74✔ ✔ Answer is complete and correct. 10.56 % c. What do you expect its price to be one year from now? (Use intermediate values rounded to 4 decimal places. Round your answer to 2 decimal places.) X Answer is not complete. Implied Capital Gain d-1. What is the…A company has total revenue of $50,000,000, cost of sales of $40,000,000, operating expenses of $5,000,000, and financing costs of $2,000,000. What are earnings per share if the company has 100,000 shares outstanding and no preferred stockholders?Jum owns shares of Abco, Inc. preferred stock which he says provides him with a constant 6.58 percent rate of return. The stock is currently priced at $45.60 a share. What is the amount of the dividend per share? OA S3.00 OB $3.15 OC S3 50 OD $354 OE S362
- Prepare a cashflow to forecast and use investment appraisal techniques to calculate Net Present Value (NPV), Return on Capital (ROC) and Payback Period (PB) for the BioMet face pay project. Do the project should go ahead and why?The Duo Growth Company just paid a dividend of $1.00 per share. The dividend is expected to grow at a rate of 26% per year for the next three years and then to level off to 5% per year forever. You think the appropriate market capitalization rate is 21% per year. Required: a. What is your estimate of the intrinsic value of a share of the stock? Note: Use intermediate calculations rounded to 4 decimal places. Round your answer to 2 decimal places. b. If the market price of a share is equal to this intrinsic value, what is the expected dividend yield? Note: Use intermediate values rounded to 2 decimal places. Round your answer to 2 decimal places. c. What do you expect its price to be one year from now? Note: Use intermediate values rounded to 4 decimal places. Round your answer to 2 decimal places. d-1. What is the implied capital gain? Note: Use intermediate values rounded to 2 decimal places. Round your answer to 4 decimal places. d-2. Is the implied capital gain…The Duo Growth Company just paid a dividend of $1.00 per share. The dividend is expected to grow at a rate of 26% per year for the next three years and then to level off to 5% per year forever. You think the appropriate market capitalization rate is 21% per year. Required: a. What is your estimate of the intrinsic value of a share of the stock? Note: Use intermediate calculations rounded to 4 decimal places. Round your answer to 2 decimal places. b. If the market price of a share is equal to this intrinsic value, what is the expected dividend yield? Note: Use intermediate values rounded to 2 decimal places. Round your answer to 2 decimal places. c. What do you expect its price to be one year from now? Note: Use intermediate values rounded to 4 decimal places. Round your answer to 2 decimal places. d-1. What is the implied capital gain? Note: Use intermediate values rounded to 2 decimal places. Round your answer to 4 decimal places. d-2. Is the implied capital gain consistent with your…
- Problem Sebastian Vincent and his wife, Elyse have they decided to purchase $2500 worth of utility stocks starting 2 years from now. The married couple is expecting their income to increase so they have decided to increase their purchases by $250 per year for the next 10 years. What would be the present worth, future worth, and annual worth of their utility stocks if they yield a uniform dividend of 10% throughout the investment period and the price/share remains constant? (Use equation Tool for solutions and provide cash flow diagram)Last year CompanyXA paid a dividend of $2 per share. Use a growth rate of 2% per year and a discount rate of 5% to value the stock. What is the implied stock price?Ritesh does not own any shares of MMM company so he sells 100 shares short. His execution price for the sale is $51. His broker gives him the following terms on the short sale: Margin Requirement: 60% The stock subsequently fell to $42 and he decided to cover his position. During the time he was short the MMM company paid a cash dividend of $1 per share. What was his percentage earned (or lost) for this transaction? -22.44% -26.14% -16.67% +22.44% +16.67% +26.14%
- The Evanec Company's next expected dividend, D1, is $3.18; its growth rate is 6%; and its common stock now sells for $36. New stock (external equity) can be sold tonet $32.40 a share.What is Evanec's percentage flotation cost, F?Please help asap. Please show all work Projects A, B, and C are mutually exclusive. Projects D and E are mutually exclusive and both are dependent on the acceptance of A. The cash flow diagrams for all the projects are given below. Use NPV technique to determine which project combination should be chosen if the MARR equals 10% and investment capital is unlimited. 1 3. A: -50 20 20 20 20 -30 13 13 13 13 C: -14 4.25 4.25 4.25 4.25 1 4 D: -15 5 -10 6. O AE O A O B O AD O Do nothingIf I want to invest my money. how long will it take $6000 to earn $220 interest (Simple) at 3%? Q 11 ABC Telecom wants to launch a new product. it is observed that the fixed cost of the new product is $28.500/year and the variable cost per unit is $200. The revenue function for the sale of D unit is SOD -SD What is the maximum profit or loss of the company?