Response to the following :
1.) Consider a firm named Laramie Entertainment with a current ratio of 1.2, a quick ratio of 0.9, and an inventory turnover ratio of 12.7. If the firm has inventories of $1.2 million, what are their current assets and cost of goods sold?
2.)Consider a stock with dividends that are expected to grow at 20% per yearfor four years, after which they are expected to grow at 5% per year ,indefinitely. The last dividend paid was $1.00, and r = 10%. Calculate the value of this stock using the multistage growth model.
3.) Calculate the value of a stock that paid a $1 dividend last year, if nextyear's dividend will be 5% higher and the stock will sell for $13.45 at year end.The required return is 13.2%.