# I need the following problems answered and put into an Excel

### Question Description:

35

I need the following problems answered and put into an Excel Spreadsheet. My course book is: Fundamentals of Corporate Finance (10th ed.), 2013 Ross, Westerfield, & Jordan. Zero Growth Dividends: 15. Nonconstant Growth [ LO1] Metallica Bearings, Inc., is a young start- up company. No dividends will be paid on the stock over the next nine years because the firm needs to plow back its earnings to fuel growth. The company will pay a \$ 12 per share dividend in 10 years and will increase the dividend by 5 percent per year thereafter. If the required return on this stock is 13.5 percent, what is the current share price? Constant Growth Dividends: 1. Stock Values [ LO1] The Jackson– Timberlake Wardrobe Co. just paid a dividend of \$ 1.45 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year indefinitely. If investors require a return of 11 percent on The Jackson– Timberlake Wardrobe Co. stock, what is the current price? What will the price be in three years? In 15 years? 7. Stock Valuation [ LO1] Apocalyptica Corp. pays a constant \$ 8.50 dividend on its stock. The company will maintain this dividend for the next 11 years and will then cease paying dividends forever. If the required return on this stock is 12 percent, what is the current share price? 9. Stock Valuation and Required Return [ LO1] Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of \$ 2.65 next year. The growth rate in dividends for all three companies is 5 percent. The required return for each company’s stock is 8 percent, 11 percent, and 14 percent, respectively. What is the stock price for each company? What do you conclude about the relationship between the required return and the stock price? Two Stage Dividend Growth: 25. Two- Stage Dividend Growth Model [ LO1] Chartreuse County Choppers, Inc., is experiencing rapid growth. The company expects dividends to grow at 18 percent per year for the next 11 years before leveling off at 5 percent into perpetuity. The required return on the company’s stock is 12 percent. If the dividend per share just paid was \$ 1.94, what is the stock price? 525 5.3 Dropbox.docx Zero Growth Dividends: 15. Nonconstant Growth [ LO1] Metallica Bearings, Inc., is a young start- up company. No dividends will be paid on the stock over the next nine years because the firm needs to plow back its earnings to fuel growth. The company will pay a \$ 12 per share dividend in 10 years and will increase the dividend by 5 percent per year thereafter. If the required return on this stock is 13.5 percent, what is the current share price? Constant Growth Dividends: 1. Stock Values [ LO1] The Jackson– Timberlake Wardrobe Co. just paid a dividend of \$ 1.45 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year indefinitely. If investors require a return of 11 percent on The Jackson– Timberlake Wardrobe Co. stock, what is the current price? What will the price be in three years? In 15 years? 7. Stock Valuation [ LO1] Apocalyptica Corp. pays a constant \$ 8.50 dividend on its stock. The company will maintain this dividend for the next 11 years and will then cease paying dividends forever. If the required return on this stock is 12 percent, what is the current share price? 9. Stock Valuation and Required Return [ LO1] Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of \$ 2.65 next year. The growth rate in dividends for all three companies is 5 percent. The required return for each company’s stock is 8 percent, 11 percent, and 14 percent, respectively. What is the stock price for each company? What do you conclude about the relationship between the required return and the stock price? Two Stage Dividend Growth: 25. Two- Stage Dividend Growth Model [ LO1] Chartreuse County Choppers, Inc., is experiencing rapid growth. The company expects dividends to grow at 18 percent per year for the next 11 years before