Can you please show me the steps for all three problems. Thanks Wyoming Mining G

Question

Can you please show me the steps for all three problems. Thanks

Wyoming Mining Group stock currently sells in the market for $1 8.00/share. It just paid a dividend of $6.00/share. Investors expect that the dividend will decline at a constant rate of 4% per year in the future. That is, the expected growth rate g is -4%. What rate of return do investors require on this stock? 29.33% 30.67% 38.67% 36.00% 28.00% United Metal Fabrication stock does not now pay dividends. Investors expect that it will begin paying a dividend of $2.00/share in exactly 5 years at time 5. That is, they forecast that D5 still be $2.00'sharc. Investors expect that the dividend will then remain at that level of $2.00/share forever after that. They require a return of 13.00% on this stock. What is the value of this stock today based on the discounted dividend model $8.35 $1 0.66 $9.44 $13.61 Old Fashioned Curtain and Drapes Corporation's bonds have a face value of $1,000 and a 10% coupon paid semiannually; the bonds mature in 5 years. What current yield would be reported in The Wall Street Journal if the yield to maturity is 15%? 1.2071% 1.3607% 1.8990% 12.0715% 6.0357%

Explanation / Answer

1. e. 28%

Current Price (P0) = 18 Last paid dividend (D0) = 6 Growth rate (g) = -4% Price of stock (Using dividend growth model) 18 = D0*(1+g)/(Ke-g) 18 = 6*(1-.04)/(Ke+.04) 18 = 5.76/(ke+.04) Ke+.04 = 0.32 Ke = 0.28 = 28%

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