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2. (10 pts) The ZYX Corporation has the following capital components and costs. Calculate ZYX 's WACC. Aztec has a 35% marginal tax rate. 3.
2. (10 pts) The ZYX Corporation has the following capital components and costs. Calculate ZYX 's WACC. Aztec has a 35% marginal tax rate. 3. Acme paid a \$2-per-share dividend yesterday. Its dividends are expected to grow at 1% indefinitely. a. (5 pts) If the appropriate discount rate for Acme's stock is 12%, what is your estimate of its current price one year from now (P1) ? b. (5 pts) What is your estimate of the stock price two years from now (P2) ? Tahle helow to he used with nrohlem #4 helow 4. (10 pts) Using the table above, what is the maximum that an investor should be willing to pay for the share of common stock? 5. (10 pts) Sally was contemplating the purchase of a stcock priced at $55/ share, but is unsure if it is appropriately priced. Analysts expect the stock to generate 30% return. The stock has a beta coefficient of 2.2. The expected market return is 8% and the 20 year Treasury Bond is yielding 5%. Help Sally determine if the stock is overpriced or underpriced at $55/shr. Show the work to support your
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