1. Valuation with price/earnings multiples For the firm shown in the following table, use the data given to estimate its common stock value employing price/earnings ( P/E ) multiples. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.)

The value of the firm's common stock is $_____ (Round to the nearest cent.)

2. IntegrativeRisk and Valuation Given the following information for the stock of Foster Company, calculate the risk premium on its common stock. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.)

Current price per share of common stock: $33.21

Expected dividend per share next year: $1.77

Constant annual dividend growth rate: 6 %

Risk-free rate of return: 7 %

The risk premium on Foster stock is nothing _____% (Round to two decimal places.)

3. Common stock valueConstant growth Use the constant-growth model (Gordon model) to find the value of the firm shown in the following table:

The value of the firm's stock is $_____. (Round to the nearest cent.)

Expected EPS $2.88 Price/earnings multiple 15.2