Please answer in excel. 7 questions. I’ve already completed
Please answer in excel. 7 questions. I’ve already completed the first one.1. A. ABC Corp. just paid a dividend of $1.95 and the dividends are expected to indefinitely grow at a constant rate of 4.1% p.a. If investors require a return of 10.2% p.a. on this stock, what is the current value? Value in there years? In 15 years? CV=33.28 , Value in 3 years=37.54, Value in 15 years=60.80 Current Value 1.95*(1+4.1%)/(10.2%-4.1%) Value in 3 years 1.95*(1+4.1%)^4/(10.2%-4.1%) Value in 15 years 1.95*(1=4.1%)^16/(10.2%-4.1%) B. XYZ Corp’s next dividend will be $2.30 per share, and the constant dividend growth rate is 4.5% forever. If the current stock price is $39.85, what is the rate of return that investors require? What is the dividend yield? Expected capital gains yield? Required rate of return=10.27%, Dividend Yield=5.77% Required return rate 2.30/39.85=4.5% Dividend Yield 2.30/39.85 2. If a constant dividend growth rate is 4.9%, and a dividend yield is 5.7% for a company, what is the required rate of return on this company stock? 3. FD Corp. pays a constant $12 dividends on tis stock for the next 9 years, then will cease paying dividends forever. If investors require 10% return on this stock, what is the current value of the stock? 4. CCC Corp’s preferred stock pays a $3.80 dividend every year, in perpetuity. If the issue currently sells for $78.45, what is the required return? 5. The stock price of QRS Inc. is $68. Investors require 11% return on similar stocks and QRS Inc. plans to pay a dividend of $3.85 next year. What growth rate is expected for the stock? 6. A. EEE Corp. has a new issue of preferred stock it calls 20/20 preferred. The stock will pay $20 dividends but the first dividend will not be paid until 20 years from today. if you require a return of 8% on this stock, how much would you pay today? B. MBI Corp. will not pay any dividends over the next nine years. It will pay a dividend of $15 per share 10 years from today and increase the dividend by 5 percent per year thereafter. If investors require 14% return on similar stocks, what is the current stock value? 7. A. A company is expected to pay $3, $10, $15 and $3.05 dividends over the next four years. Afterwards, the company will maintain a constant 5% dividend growth rate forever. If the required return on the stock is 11%, what is the current stock value? B. YYY Corp. just paid a $2.50 dividend and its dividends are expected to grow at 25% rate for the next three years, then at a constant rate of 6% thereafter forever. If investors require 13% return on this stock, what is the current stock value? 8. Daniela Company has the following historical information: Year 1 Year 2 Year 3 Year 4 Stock price $ 49.50 $ 58.12 $ 67.34 $ 60.25 EPS 2.40 2.58 2.71 2.85 Earnings growth rate 11% Using the company’s average PE as a benchmark, estimate the target stock price in one year.