Business, 26.02.2020 23:49 Gearyjames8

1) A stock pays a dividend of $10 per share. It has a cost of capital, K of 8%. It has a constant growth rate of 3%. Use the Constant Dividend Growth model to calculate it’s current price. 2) A stock . is about to go public and listed on the Nasdaq. Using the following information calculate it’s stock price. a. A comparable stock has a beta of 1.5. b. The current risk free rate is 2% and the return on the Nasdaq is 8%. c. The company’s Free Cash flowis going to grow at 30% per year for the next three years. d. The long term growth rate after three years will be 5%. e. It pays a dividend of 20% of Free Cash Flows at the moment. The current free cash flow for the company is $ 10 per share.

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1) A stock pays a dividend of $10 per share. It has a cost of capital, K of 8%. It has a constant gr...

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