Wednesday 16 September 2015

Quantitative Assignment

FIN2030 Quantitative Assignment, Week 3 1. Stock. What is the value of a stock with a a. $2 dividend just paid and an 8% required return with 0% growth? b. $3 dividend just paid and a 9% required return with 1% growth? c. $4 dividend to be paid and a 10% required return with 2% growth? d. $5 dividend to be paid and a 11% required return with 3% growth? 2. Stock. What is the required rate of return on a stock with a a. $1.5 expected dividend and a $19 price with 7% growth? b. $1.75 expected dividend and a $25 price with 8% growth? c. $2 expected dividend and a $26 price with 9% growth? d. $2.25 expected dividend and a $33 price with 10% growth? 3. Stock. What is the growth rate of the stock with a a. $2.50 expected dividend and a $30.60 price with 15% required return? b. $2 expected dividend and a $25.35 price with 12% required return? c. $3 expected dividend and a $10.40 price with 11% required return? d. $1.77 expected dividend and a $50.20 price with 14% required return? 4. Stock price. What is the value of a stock with high growth then constant growth, a. dividends of $1.50, $3.00, and $6.00, constant growth at 4% and a required return of 6%? b. dividends of $2.50, $3.50, and $5.00, constant growth at 3.5% and a required return of 8%? c. dividends of $1.50, $3.00, and $6.00, constant growth at 5% and a required return of 10%? d. dividends of $2.50, $3.50, and $5.00, constant growth at 7% and a required return of 12%?

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