发布时间 : 星期一 文章兹维博迪金融学第二版试题库9TB更新完毕开始阅读1a297b8b26284b73f242336c1eb91a37f11132a7
6. New competition in Karamazov Brothers’ market is going to have an impact on the growth in
the firm’s dividends. A current dividend of $0.92 was paid yesterday by Karamazov Brothers, and this dividend is expected to grow by 20% in the first year. After that point, the growth in dividends is expected to “decay” to the firm’s long run constant growth of 5%. Such a
“decay” process is one in which dividend growth declines by 5 percentage points per year up to the point where the expected constant rate of dividend growth is reached. So, year 2
dividend will be 15 percent higher than year 1, year 3 dividend will be 10 percent higher, and after year 3, dividends will grow by 5 percent forever. Calculate the price you would pay today for Karamazov Brothers’ stock. Investors have a required rate of return of 14%.
Answer: First of all, calculate the dividend stream: D0 = $0.92 D1 = $0.92(1.2) = $1.10
D2 = $1.04(1.15) = $1.27
D3 = $1.2696(1.10) = $1.40
D4 = $1.39656(1.05) = $1.47
After this year, the stream follows a constant growth model.
The price, P0 = D1/(1 + k) + D2/(1 + k)2 + D3/(1 + k)3 + P3/(1 + k)3
P3 = D4/k – g
= $1.47/ (0.14 – 0.05) = $16.33
P0 = $1.10/ (1.14) + $1.27/(1.14)2 + ($1.40 + $16.29)/(1.14)3 = $13.91
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7. New competition in Halliwell Sisters’ market is going to have an impact on the growth of the
firm’s dividends. A current dividend of $1.05 was paid yesterday, and this dividend is expected to increase by 35% in the first year. After that point, the growth in dividends is expected to “decay” to the firm’s long-run constant growth of 5%. Such a “decay” process is one in which dividend growth declines by 10 percentage points per year up to the point where the expected constant rate of dividend growth is reached. So, year 2 dividend will be 25 percent higher than year 1, year 3 dividend will be 15 percent higher than year 1, and after year 3, dividends will grow by 5 percent forever. Assuming that investors require a rate of return of 16% on Halliwell stock, calculate the current price of the stock.
Answer: First of all, calculate the dividend stream: D0 = $1.05
D1 = $1.05(1.35) = $1.42
D2 = $1.4175(1.25) = $1.78
D3 = $1.771875(1.15) = $2.05 D4 = $2.05(1.1) = $2.15
After this year, the stream follows a constant growth model.
The price, P0 = D1/(1 + k) + D2/(1 + k)2 + D3/(1 + k)3 + P3/(1 + k)3 P3 = D4/k – g
= $2.15/(0.16 – 0.05) = $19.55
P0 = $1.42 (1.16) + $1.78/(1.16)2 +($2.05 + $19.55)/(1.16)3 = $16.38
8. Fraser Inc. paid a dividend of $5.00 earlier today. Your stockbroker believes that the stock
will sell for $85.36 in two years. This price is based on her belief that the stock's dividends will grow at a rate of 20% for the next two years and that the appropriate discount rate for this stock is 16%. Suppose your stockbroker tells you that she determined that the stock would sell for $85.36 in two years by using the constant growth model of stock valuation based on the dividends from year three forward. What constant dividend growth rate must she be assuming from year three forward?
Answer: D0 = $5.00 D1 = $5(1.20) = $6 D2 = $7.20
D3 = $7.20(1 + g), where one has to solve for g
P2 = $85.36 = D3/k – g
$85.36 = 7.20(1 + g)/(0.16 – g) (solve expression for g) g = 6.98%
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9. Finster Corporation just paid a dividend of $1.75. This company is expected to experience
abnormally high growth for the next five years: 50 percent in the first two years, 30 percent in the next two years, and 20 percent in year 5. After that, the growth is expected to settle down to 7 percent per year forever. If we assume that investors’ required rate of return is 15 percent, compute the current price of the stock.
Answer: Calculate dividend stream and get P5.
D0 = $1.75 D1 = $1.75(1.5) = $2.625 D2 = $3.9375 D3 = $5.11875 D4 = $6.654375 D5 = $7.98525 D6 = $8.5442175
P5 = $8.5442175/(0.15 – 0.07) = $106.80
P0 = $2.63/(1.15) + $3.94/(1.15)2 + $5.12/(1.15)3 + $6.65/(1.15)4 + ($7.99 + $106.80)/(1.15)5 P0 = $69.51
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