1.lowest acceptable bid per share

2.highes possible bid per share

3.minimum acceptable rate of return of highest possible bid

ch21 assume co's expected year-end dividend is P3.75 and is expected to grow at a constant rate of 5% with a beta of 75; risk-free rate is 4.75%; market risk premium is 4% sko, the acquiring company, expects synergies will enable the dividend to grow at a constant rate of 8% instead and plans to increase its beta by 29. required: if sko is keen on merging with co, what is the lowest acceptable bid per-share that it can make? P 2 decimals Next ch21 (continuation) assume vco's expected year-end dividend is P3.75 and is expected to grow at a constant rate of 5% with a beta of 75; risk-free rate is 4.75%; market risk premium is 4%. sko, the acquiring company, expects synergies will enable the dividend to grow at a constant rate of 8% instead and plans to increase its beta by.29. required: what is the highest possible bid per-share that it can make? P_in 2 decimals ch21 (continuation) assume vco's expected year-end dividend is P3.75 and is expected to grow at a constant rate of 5% with a beta of 75 risk-free rate is 4.75%; market risk premium is 49 sko, the acquiring company, expects synergies will enable the dividend to grow at a constant rate of instead and plans to increase its bets by 29. required at what minimum accentable rate of reture was the highest possible bid perstare computed? In 2 decimals