Financial analyst forecast ABC Inc. growth for the future to be 12%. ABC\'s rece

Question

Financial analyst forecast ABC Inc. growth for the future to be 12%. ABC's recent dividend was $1.60. What is the value of ABC stock when the required return is 15%?


If I could also get help on these 3 additional questions that would be great!
Which of the following will increase a firms current ratio?
a. Purchase inventory using cash.
b. Buy equipment with a short term bank loan.
c. Accounts receivable are paid in cash.
d. Accrued wages and taxes increase.
e. None of the statements will increase a firms current ration

Which of the following will increase the present value of an annuity?
a. The discount rate increases.
b. The discount rate decreases.
c. The number of periods the annuity is received increases.
d. Statements b and c are correct.

Which of the following will increase the present value of an annuity?
a. The number of periods decreases.
b. The interest rate decreases.
c. The amortization schedule decreases.
d. The effective rate is calculated over fewer years.

Explanation / Answer

1) c. Accounts receivable are paid in cash. 2) b. The discount rate decreases. 3)b. The interest rate decreases.

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