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#2 please Ferrite Corp is a manufacturer of electronics components. They pay half their income out as dividends. The firm reported $80 million in net

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Ferrite Corp is a manufacturer of electronics components. They pay half their income out as dividends. The firm reported $80 million in net income, $50 million in capital expenditures, and $20 million in depreciation expense last year. The firm reported that its noncash working capital increased by $20 million, and that total debt increased by $10 million during that same year. The book value of equity of Ferrite at the beginning of last year was $400 million, and they have a cost of equity of 10%. 1. What growth rate in equity can this company sustain? Answer to one decimal place. Whole percentages, not decimal form. 2. Presuming that the company can maintain this growth rate for the next 5 years, and then maintain a growth rate of 3% after that, what would the value of the equity be based on a FCFE model? Presume the growth rate affects the FCFE directly, and do not worry about continual debt adjustments. Answer in millions of dollars to two decimal places. 3. If the company has 26 million shares outstanding, what stock price would this support? Answer in dollars to two decimal places

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