6-10 Finance: Please answer all. Thank you very much!

6. DFB, Inc. expects earnings this year of $5.48 per share, and it plans to pay a $3.30 dividend to shareholders at that time (one year from now). DFB will retain $2.18 per share of its earnings to reinvest in new projects that have an expected return of 14.1% per year. Suppose DFB will maintain the same dividend payout rate, retention rate, and return on new investments in the future and will not change its number of outstanding shares.

6a. What growth rate of earnings would you forecast for DFB?

6b. If DFB's equity cost of capital is 11.9%, what price would you estimate for DFB stock today?

6c. Suppose, instead, that DFB paid a dividend of $4.30 per share this year and retained only $1.18 per share in earnings. If DFB maintains this higher payout rate in the future, what stock price would you estimate for the firm now? Should DFB raise its dividend?

7. DFB, Inc. expects earnings this year of $5.48 per share, and it plans to pay a $3.30 dividend to shareholders at that time (one year from now). DFB will retain $2.18 per share of its earnings to reinvest in new projects that have an expected return of 14.1% per year. Suppose DFB will maintain the same dividend payout rate, retention rate, and return on new investments in the future and will not change its number of outstanding shares.

7a. What growth rate of earnings would you forecast for DFB?

7b. If DFB's equity cost of capital is 11.9%, what price would you estimate for DFB stock today?

7c. Suppose, instead, that DFB paid a dividend of $4.30 per share this year and retained only $1.18 per share in earnings. If DFB maintains this higher payout rate in the future, what stock price would you estimate for the firm now? Should DFB raise its dividend?

8. Stelco Steel plans to pay a dividend of $3.04 this year. The company has an expected earnings growth rate of 4.3% per year and an equity cost of capital of 10.8%.

8a. Assuming that Stelco's dividend payout rate and expected growth rate remain constant and that the firm does not issue or repurchase shares, estimate Stelco's share price.

8b. Suppose Stelco decides to pay a dividend of $1.04 this year and use the remaining $2.00 per share to repurchase shares. If Stelco's total payout rate remains constant, estimate Stelco's share price.

8c. If Stelco maintains the dividend and total payout rate given in part b, at what rates are Stelco's dividends and earnings per share expected to grow?

9. Sora Industries has 68 million outstanding shares, $124 million in debt, $57 million in cash, and the following projected free cash flow for the next four years.

9a). Suppose Sora's revenue and free cash flow are expected to grow at a 3.9% rate beyond year four. If Sora's WACC is 10.0%, what is the value of Sora stock based on this information?

10. Suppose that in April 2019, Northside had sales of $36,336 million, EBITDA of $5,217 million, excess cash of $5,254 million, $3,809 million of debt, and 1,582.9 million shares outstanding.

10a. Using the average enterprise value to sales multiple in the table above, estimate Northside's share price.

10b. What range of share prices do you estimate based on the highest and lowest enterprise value to sales multiples in the table above?

10c. Using the average enterprise value to EBITDA multiple in the table above, estimate Northside's share price.

10d. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above?

Projected free cash flows Data Table