Question
1. Gates Co. recently paid a dividend of 4.25. If you expect dividends to grow indefinitely at a rate of 9%, and, due to the
1. Gates Co. recently paid a dividend of 4.25. If you expect dividends to grow indefinitely at a rate of 9%, and, due to the perceived riskiness of Gates Co. equity, you require a return of 15%, what are you willing to pay for a share of stock?
2.
You gather the following information from an annual report (A quick check reveals that the firm has terrible accountants, but you've been instructed to use the numbers as given):
Sales = 34,238
COGS = 18,173
EBIT = 22,342
Interest = 2,340
Net Income = 7,592
Current Assets = 23,130
Inventory = 2,705
Accounts Receivables = 6,901
Total Assets = 62,432
Current Liabilities = 2,362
Total liabilities = 34,118
Total equity = 37,350
What is the firm's times inventory turnover
3. The market risk premium is 14%, Treasury bills are yielding 2.4%, and Schiano Corp has a beta of 1.15, what is the required return for Schiano Corp?
PLEASE HELP QUICKLY, THANK YOU
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