7. ACME has a beta of 0.86. The return on the market is 115 . The current t-bill rate is 3.796 . Fhe last dividend made by ACME was $1.05. The next dividend is expected to be 3% higher. The expected growth rate is 2.898. What is the intrinsic value of ACME? a. Diggin Tools plans to issue new preferred stock, which has a market value of $85 per share. Holders of the stock will receive an annual dividend equal to $9.35. The flotation costs associated component cost of preferred stock, rps ? 9. ACME has a beta of 1.07. The return on the market is 10%. The current t-bill rate is 3%. The expected dividend in the next period is $1.00. The expected growth rate is 2%. What is the intrinsic value of ACME stock? 03+1.07(010.3)01044021) ACME has a beta of 1.25. The return on the market is 12%. The current t-bill rate is 3.5%. Th last dividend made by ACME was $1.27. The next dividend is expected to be $1.50. The expected growth rate is 3.28%. What is the intrinsic value of ACME? The last dividenid mode by ACME was 51.04, The next dividend is expected to be 51,37. . The expected srowth rate is 3.2dS. The current market price is $17.49. Would you recornmend purchasing MCME? Defend your answer using the valuation modets we have learned in elass. 05(164.038038+1.05(0.174.038.11217.49=0.0256 with a cost of I 256: and 55% common stoek with a cost of 149%. Calculate WACC. 4. ACME corp is considering an investment. The t-billrate-is-currently 3.1%. The market return is 14.2\%. The beta for the investment is 0.96. What is the required rate of return for the investment? 13.769.031+.46(.14) Bouchard Company's stock sells for $20 per share, its last dividend (D0) was $1.00, its growth rate is a constant 6 percent, and the company must pay flotation cost equal to 20 percent when it issues new common stock. What is Bouchard's cost of issuing new common stock