1.

atable dersand for ts products, and coesequenty it has a low oquty beta of 0.625 and can bourow at 4.6%, just 20 basis points over the risk-free rale of 4.4%. The expectod return of the market is 10.3\% and PKGFis tax rase is 27 : a. This year, PKGR is expected to have tree canh Sows of $6.2 blion. What conetant expecind growth rese of forn cash flow is consistert with its current stock price? atnounces that it will raise is debt equty ratio to 0.625 through a leveraged mocap, determine the incraase or decrease in the stock prion that would repilt from the antiopated tax savings. a. This year, PKCR is expected to have tree cash fiewn of 562 balion. What constant expected growh rase of thot cass fow is consisient with at currerk atock price? The constant expected growth rato of free caas sow is contisieit wen its current stock pecee is 8. (Round to teo decimal places.) increase (or decrease) in stock price is 1 (Roind to the nearest cent. Use a mirus sign to indicate a negitive number)