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6 /9 74.1% Question 8 0.5 pts Como Electronics just paid a dividend of 3.15 per share. The company plans to increase its dividends by

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6 /9 74.1% Question 8 0.5 pts Como Electronics just paid a dividend of 3.15 per share. The company plans to increase its dividends by 5% each year for the next 5 years, then reducing the annual increase to 2.5% in perpetuity If the required rate of return of a Como investor is 11%, what will a share of stock sell for today? Please choose the answer from the options below that best matches your answer. O $42.14 O $48.48 O $13.37 O $44.28 O $28.77 0.5 pts Question 9 McDonaids is considering the purchase of Yukon Commercial Bakeries. Yukon bakes hamburger buns and bagels used by several fast food restaurant chains, including McDonads. McDonalds sees the purchase as a way to maintain a consistent supply of bakery products to its Canadian operators and franchisees. The current free cash flow for Yukon is $28.9 million. The cash flows are expected to grow at 7 percent for the next five years before leveling off to 4 percent for the indefinite future. The cost of capital for McDonalds and Yukon is 11 percent and 9 percent, respectively. Yukon is publicly traded and has 18 million shares of stock outstanding and $142 million in debt outstanding. Yukon also has $28 million in cash and cash equivalents. What is the maximum price per share McDonalds should pay for Yukon Commercial Bakeries? O $34.23 O $31.71 O $30.03 O $37.92 O $20.58 Assume the following data for XXonn, a publicly held computer graphics firm that makes animated shorts and films marketed mainly in the Far East If XXonn stock price is $57.88/share, how much would be attributed to the firm's growth opportunity? NOTE: Some of the data in the table below is NOT relevant to this problem $57.88 Stock price $2.97 Dividend per share $7.99 Eamings per share $3.02 Book value per share Discount rate 18% Effective Tax Rate 21% $221.45 million EBITDA O $54.91 O $44.30 O $16.78 O $13.40 O $36.37

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