358 of 928 Dutatum 2015 wa kaming per bare 5625 Price per mos S40,00 Book valued com.000.000 Total.com shares 2.500,000 Cock dividende S4.00 TO DO a. What is the farm's current book value per share? b. What is the firm's current PE ratio c. (1) What is the current required return for Encore sock? (2) What will be the new required return for Encore stock assuming that the firm expands into European and Latin A American markets as planned? d. If the securities analysts are correct and there is no growth in future dividends, what will be the value per share of the Encore stock (Note: Use the new required return on the company's stock here) 356 (1) 1f Jordan Ellis's predictions are correct, what will be the value per share of Encore stock if the firm maintains a constant annual 6% growth rate in future dividends? (Note: Continue to use the new required return here.) (2) If Jordan Ellis's predictions are correct, what will be the value per share of Encore stock if the firm maintains a constant annual 8% growth rate in dividends per share over the next 2 years and thereafter f. Compare the current (2015) price of the stock and the stock values found in parts a, d, and e. Discuss why these values may differ. Which valuation method do you believe most clearly represents the true value of the Encome stock Encore International In the world of trendsetting fashion, www are requisites 1to success, Jordan Ellis had hoch. During 2015, his international casual wear company. Encue, rocketed to $300 miles in alter 10 years in business. His fashion line covered the young woman from head to toe with us, weten, dresses, Women, skirt, pants, weatshirts, make and shown Manhattan, there was an Encore shop every five in blocks, each featuring a different color. Sume shops showed the entire line in me, and other featured it in canary yellow Encore had made it. The company's scalpowth spectacular that no one could have predicted it. However, wecurities analysis speculated that Encore could not keep up the pace. They wamed that competition is fierce in the fashion industry and that the firm might come liker se growth in the future. They estimated that stockholders also should expect so growth in future dividends. Contrary to the convertits, oda believed that the company could maintain a constant annual growth an individende per shore of in the future, or possibly 5. for the next year and thereafter. Ellie based his estimates on an established long-term paplan into European and Latin American markets. Venturing into the market was expected to cause the nisk of the tim, as measted by the risk prestock, to increase immediately from 8.8% to 10%. Currently, the risk-freetate In preparing the long term financial plan, Income chief clothicer has a Med junior hinancial analyt. Man Scott, tee the firm's current price. He has asked Mars to consider the conservative predictions of the securities analysts and the agree peediction of the company founder jordan Ellis Marc has compiled the following 2015 financial daca toadheanalysis Empre hiper katos S 2. Ged TO DO What the firm's current book value per share? . What is the firm's current Erato? 1) What is the current required return for (2) What will be the required for coming that the form expands into European and Latin American markets pled? d. If the securities analys are correct and there is the future dividende what will be the value per share of the cock? Note the new required return on the company's stack here 356 c. Jordan Ellis's predictions are come will be the per share of Encore sack of the form maintain colegrowth rate in future dividends2 (Note: Continue to the ed am here.) Jordan Ellis's predictions are come what will be the sale per here at For stock if the firm mais acelgrowth rate is dividends per share the text 2 years and their . Compare the current (2015) pred the cock and the sound in parts a, dande. Discus why these values muy differ. Which method do you believe most dearly represents the two of the cock