Chapter 8
Problems 1-35
Input boxes in tan
Output boxes in yellow
Given data in blue
Calculations in red
Answers in green
Chapter 8
Question 1
Input area:
Output area:
Dividend paid 1.45$
Dividend growth rate 6%
Required return 11%
# of years 0
# of years 3
# of years 15
Chapter 8
Question 2
Input area:
Output area:
Dividend paid 1.89$
Dividend growth rate 5%
Stock price 38.00$
Chapter 8
Question 3
Input area:
Output area:
Dividend paid 1.89$
Dividend growth rate 5%
Required return 38.00$
Chapter 8
Question 4
Input area:
Output area:
Dividend paid 3.40$
Dividend growth rate 4.50%
Required return 11%
Chapter 8
Question 5
Input area:
Output area:
Dividend growth rate 4.8%
Required return 6.9%
Chapter 8
Question 6
Input area:
Output area:
Next year’s dividend 3.25$
Stock price 59.00$
Required return 11.0%
Chapter 8
Question 7
Input area:
Output area:
Current dividend 8.50$
Years until dividend ceases 11
Required return 12.0%
Chapter 8
Question 8
Input area:
Output area:
Current dividend 4.75$
Share price 93.00$
Chapter 8
Question 9
Input area:
Dividend paid 2.65$
Output area:
Dividend growth rate 5%
Red required return 8%
Yellow required return 11%
Blue required return 14%
Chapter 8
Question 10
Input area:
Output area:
Shares outstanding 400,000
Share price 48.00$
Chapter 8
Question 11
Input area:
Output area:
Shares outstanding 400,000
Share price 48.00$
Number of seats 4
Chapter 8
Question 12
Input area:
Output area:
Benchmark PE 18
Benchmark PS 21
Chapter 8
Question 13
Input area:
Output area:
Sales per share 9.23$
Sales per share 1,200,000$
Shares outstanding 130,000
Benchmark PS 5.2
Benchmark PS 4.6
Chapter 8
Question 14
Input area:
Output area:
Stock price at beginning of final period 75.05$
Stock price at beginning of second period 61.62
Dividend paid 3.20$
Dividend growth rate 5.0%
Required return for first 3 years 15%
Required return for second 3 years 13%
Final required return 11%
Chapter 8
Question 15
Input area:
Output area:
Stock price at constant growth 141.18$
Future dividend 12.00$
Years until first dividend 10
Dividend growth rate 5%
Required return 13.5%
Chapter 8
Question 16
Input area:
Output area:
Year Dividend
Dividend growth rate 5.00$
Years of growth 5
Required return 11%
Chapter 8
Question 17
Input area:
Output area:
Price after Year 4 dividend 37.50$
Dividend one 12.00$
Dividend two 8.00$
Dividend three 7.00$
Dividend four 2.50$
Dividend growth rate 5%
Required return 12%