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1 question in 2 parts need answered asap please The next two questions are based on this prompt: Weasel Works (WW) pays annual dividends. The

1 question in 2 parts need answered asap please image text in transcribed
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The next two questions are based on this prompt: Weasel Works (WW) pays annual dividends. The first dividend will be paid in exactly 1 year. You expect Weasel Works first dividend to be $1 and you expect that after that the dividend will grow at a 3% annual rate forever. If r = 12% what is a share of WW worth? Question 1: Which of the Key Finance Equations is easiest to use to answer this question? Select one: O a. 2 O b. 7 O c. 13 O d. 14 Question 2: Given the information directly above, what is a share of Weasel works worth? Select one: O a. $3.33 O b. $9.99 O c. $11.11 O d. None of the options above are correct. Basic 1. FV = PV(1 + r)" 2. PV=FV + (1 + r)" 3. r=(FV + PV) --- 1 4. n = In (FV+PV)+ In (1 + r) Multiple Cash Flow 5. PV=(FV+r)(1-(1 + (1 + r)")) 6. PV, -(FV, +r) 7. Only ifr>g: PVCGP = FV CGP + (r-g) 8. Ift=1: FVAL rPVAL + (1 - (1 + (1 + r)")) 9. Ift>1; p=r+t: FVL = PPV +(1-(1 + (1 + p) '")) 10. EAR=(1+p)-1 Solving for r [R] 11. Zero-coupon bond: use basic equation 3. 12. Coupon bond: Use an online bond yield calculator or a financial calculator. 13. Preferred stock: Solve equation 6 for r, yielding r= - FV-PV =D, P. 14. Constant growth stock: Solve equation 7 for r, yielding r= (FV, + PV) +g=(D, +P) +g Bonus Equations: 15. E(R)-R,+B [E(RM) - RJ 16. Degree of leverage = value of the asset + amount of equity 17. WACC = (CSW, R.) + (CSW.R. * [1 - tax rate])

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