1. Angelo Company just paid a dividend of $2.00 (D0). It expected to increase by 12% per year for the next two years. Growth will slow down to 8% per year for the following three years, and finally...

I need help with these finance problems.


1. Angelo Company just paid a dividend of $2.00 (D0). It expected to increase by 12% per year for the next two years. Growth will slow down to 8% per year for the following three years, and finally slow to a 5% per year thereafter. Your required rate of return is 25%, how much you are willing to pay for this stock? (Chapter 7, slide 21-26 provides similar example). a. $13.990 b. $13.705 c. $13.217 d. $12.004 e. $12.456 Use the following information for question 2 to question 3. ProbabilityCash Flow 0.32$ 60,000 Land 0.50 80,000 0.18 100,000 The risk-free rate is 6%. 2. What is the expected value of this land investment? (Chapter 6, slide 11-12) Example on slide is return, here is cash flows. You can apply the same formula to get the expected value. a. 77,200 b. 77,300 c. 77,600 a. 77,880 b. 77,900 3. What is the standard deviation of this land investment? (Chapter 6, slide 14-16) a. 13,937.001 b. 13,862.178 c. 14,009.366 d. 14,339.696 4. The beta of land is 1.8. Using CAPM, please calculate the rate of return for this investment if the expected market return is 12%. Risk-free rate is 6%. (Chapter 6, slide 55-56) a. 17.91% b. 16.62% c. 17.85 d. 14.53% e. 16.80% 5. Trump invested $60,000 in a 2-stock portfolio. He invested $45,000 in Stock A, and the rest in Stock B. A's beta is 1.60 and B's beta is 0.70. What is the portfolio's beta? a.1.167 b.1.262 c.1.318 d.1.327 e.1.375 6. Assuming Anglo Company will grow at a constant rate of 11% a year into the indefinite future. It just paid dividends of $2 a share. The rate of return on stocks similar to Angelo is about 15%. What should a share of Angelo sell for today? a.55.5 b.53.5 c.49.5 d.48.5 e.47.5