第九章 习题

1. You expected the price of IBX stock to be $59.77 per share a year from now. Its current market price is $50, and you expect it to pay a dividend one year from now of $2.15 per share.a) What is the stocks expected dividend yield, rate of price appreciation, and holding-period return?b) If the stock has a beta of 1.15, the risk-free rate is 6% per year, and the expected rate of return on the market portfolio is 14% per year, what is the required rate of return on IBX stock?c) What is the intrinsic value of IBX stock, and how does it compare to the current market price?d) If the dividend is expected to grow at 11.2% per year forever, the required rate return on IBX stock is 15.2%, what is its intrinsic value?2. The market consensus is that Analog Electronic Corporation has an ROE=9%, has a beta 0f 1.25, and plants to maintain indefinitely its traditional plowback ratio of 2/3. This years earnings were $3 per share. The annual dividend was just paid. The consensus estimate of the coming years market return is 14%, and T-bills currently offer a 6% return.a) Find the price at which Analog stock should sell.b) Calculate the P/E ratio.c) Calculate the present value of growth opportunities.d) Suppose your research convinces you Analog will announce momentarily that will immediately reduce its plowback ratio to 1/3. Find the intrinsic value of the stock. The market is still unaware of this decision. Explain why intrinsic value no longer equals market price and why is greater or less than .3. a) Computer stocks currently provide an expected rate of return of 16%. MBI, a large computer company, will pay a year-end dividend of $2 per share. If the stock is selling at $50 per share, what must be the markets expectation of the growth rate of MBI dividend?b) If dividend growth forecasts for MBI are revised downward to 5% per year, what will happen to the price of MBI stock? What (qualitatively) will happen to the companys price-earnings ratio?4. The Duo Growth Company just paid a dividend of $1 per share. The dividend is expected to growth at a rate of 25% per year for the next three years and then to level off to 5% per year forever. You think the appropriate market capitalization rate is 20% per year.a) What is your estimate of the intrinsic value of a share of the stock?b) If the market price of a share is equal to this intrinsic value, what is the expected dividend yield?c) What do you expect its price to be one year from now? Is the implied capital gain consistent with your estimate of the dividend yield and the market capitalization rate?5. ABC stock has an expected ROE of 12% per year, expected earnings per share of $2, and expected dividends of $1.5 per share. Its market capitalization rate is 10% per year.a) what are its expected growth rate, its p