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Let's go through the questions step by step, starting from the first one visible (Question 16):

### 16. Dividend Valuation
The problem asks about the price of a stock today, given the current dividend and growth information:
- **Dividend = 3%/share**
- **Required return on equity = 15%**
- **Company’s growth rate = 4.8%**

The formula used for dividend discount models is:

\[
\text{Price of stock} = \frac{D_1}{r - g}
\]

Where:
- \( D_1 \) is the dividend next year (equal to the current dividend since no information about increases this year is given).
- \( r \) is the required return on the stock (15% in this case).
- \( g \) is the growth rate of dividends (4.8%).

The dividend in monetary terms is given as \( 0.03 \times \text{Stock Price} \), but since it isn't provided, we can solve using other methods. First, let's check if the options offer potential clues based on the formula:

#### Calculation:
We'll solve this one using the next dividend and growth rate assumptions and try using possible answers like 35.425 and see if it fits.

### 17. Return on Equity (ROE) and Growth Rate
Here, you're given the following dataLet's go through the questions step by step, starting from the first one visible (Question 16):

### 16. Dividend Valuation
The problem asks about the price of a stock today, given the current dividend and growth information:
- **Dividend = 3%/share**
- **Required return on equity = 15%**
- **Company’s growth rate = 4.8%**

The formula used for dividend discount models is:

\[
\text{Price of stock} = \frac{D_1}{r - g}
\]

Where:
- \( D_1 \) is the dividend next year (equal to the current dividend since no information about increases this year is given).
- \( r \) is the required return on the stock (15% in this case).
- \( g \) is the growth rate of dividends (4.8%).

The dividend in monetary terms is given as \( 0.03 \times \text{Stock Price} \), but since it isn't provided, we can solve using other methods. First, let's check if the options offer potential clues based on the formula:

#### Calculation:
We'll solve this one using the next dividend and growth rate assumptions and try using possible answers like 35.425 and see if it fits.

### 17. Return on Equity (ROE) and Growth Rate
Here, you're given the following 
- **Return on Equity (ROE) = 20%**
- **Dividend payout = 2 €/share**
- **Earnings per share (EPS) = 5 €/share**

From this, the dividend growth rate \( g \) is calculated using:

\[
g = ROE \times (1 - \text{payout ratio})
\]

Where payout ratio is:

\[
\text{Payout ratio} = \frac{\text{Dividend per share}}{\text{Earnings per share}} = \frac{2}{5} = 0.4
\]

Thus, the growth rate is:

\[
g = 0.20 \times (1 - 0.4) = 0.20 \times 0.6 = 0

Solve the finance-related problems involving dividends, ROE, stock prices, and portfolio risk calculations.

Solve step-by-step finance problems involving dividend valuation, return on equity (ROE), stock prices, and portfolio risk. Learn how to apply key financial formulas such as the Dividend Discount Model and the Treynor Ratio.

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