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4. Company X is expected to pay an year-end dividend of \$8 a share on its common stock. After the dividend payment the stock is expected to sell at \$100 per share. The required rate of return on the common stock is 20%. Then, calculate the current price of the stock.,5. A share of common stock has an expected long-run constant dividend growth rate of 8%, and the most recent dividend Do, was \$4.00. The required rate of return on the common stock is 20%. Then, using the dividend growth model, calculate the current price of the stock.,6. Company B’s dividends are expected to grow at a constant rate of g (for ever). Current price of the stock Po is \$40, D1= \$1.20 and Ks=9%. Then, calculate the constant growth rate "g.",7. If the dividends on a preferred stock is \$9 per year, and the required rate of return on the stock is 12%, then calculate the current price of the preferred stock.,8. For Stock A, the cash dividend expected one year from now is \$9 [D1]. The dividends are expected to grow at a constant rate of 4% per year for ever. The required rate of return on the common stock is 16%. Then calculate the current price of the stock using the dividend growth model. ,9. The following cash flows are given for the project Z:,Co= -\$6,000, C1= +\$3,000, C2 = +\$4,000, C3= +\$6,000, C4= +\$2,000, C5= \$1,000,Calculate the following : ,(a) NPV at 12% discount rate,(b) IRR,(C) The playback period of Project (Z),10. The following cash flows are give for the two mutually exclusive projects X and Y. The project X requires an initial investment of \$12,000 (in time ‘0’) and project Y needs an initial investment of \$10,000 (in time ‘0’). ,Year 1 2 3 4 ,Project X \$4,500, 6,000, 7,500, 9,000,Project Y \$9,000, 5,000, 4,500, 3,000,(a) Calculate the NPV for each project using a discount rate of 12%.,(b) State your accept/reject decision for each project.,