1.A share of common stock has just paid a dividend of $4.00.If the expected long-run growth rate for this stock is 7%, and if investors require a(n) 11% rate of return, what is the price of the stock?

2.Westsyde Tool Company is expected to pay a dividend of $2.00 in the upcoming year. The risk-free rate of return is 6% and the expected return on the market portfolio is 12%. Analysts expect the price of Westsyde Tool Company shares to be $29 a year from now. The beta of Westsyde Tool Company's stock is 1.20. What is the intrinsic value of Westsyde Tool Company stock today?

3.A company has a profit margin of 25%, an asset turnover ratio of 1.5, and an equity multiplier ratio of 1.65, both the tax burden and the interest burden are at 1, if the profit margin decreases to 20% but the asset turnover ratio decreases to 1.3, what will be company's new ROE?

4.A firm has a stock price of $54.75 per share. The firm's earnings are $75 million and the firm has 20 million shares outstanding. The firm has an ROE of 15% and a plowback ratio (retained earnings ratio) of 65%. What is the firm's PEG ratio?

5.You forecast a company to have a ROE of 15%, a dividend payout ratio of 30%. The company has a beta of 1.2. The market risk premium is 8% and the risk free rate is 2%. What is company's intrinsic forward PE ratio based on the formula? If you also know currently the company has a price of $30, and you forecast the company to have a $1 earnings per share. If firms with similar risks in the industry have a PE ratio of 27 with an estimated earnings growth rate of 12%, is the company overvalued or undervalued based on PEG approach?

6.Motor Homes Inc. (MHI) is presently enjoying abnormally high growth because of a surge in the demand for motor homes.The company expects free cash flow to grow at a rate of 20% for the next 4 years, after which there will be no growth (g = 0) in FCFF.The company's last FCFF, FCFF₀, was $1.50.The firm is consisted of 100% equity and has no debt.MHI's beta is 1.5, the market risk premium is 6%, and the risk-free rate is 4%. Given there's no debt, what is the current equity value of the firm using DCF model?

7.Company A's current free cash flow is $2 dollars and forecasts its FCFF to grow at 0% for 2 years, then 10% for 2 years, then at 5% forever. The firm is consisted of 100% equity and has no debt.If the company's beta is 1.5, the risk free rate is 2% and the market return is 10%. What will be the equity value of the firm today using DCF model?

8.The EBIT of a firm is $400, the tax rate is 35%, the depreciation is $20, capital expenditures are $60 and the increase in net working capital is $30. What is the free cash flow to the firm?