7. Carl Zeiss Meditec AG, 65 percent owned by the Carl Zeiss Group, provides screening, diagnostic, and therapeutic systems for the treatment of ophthalmologic (vision) problems. Reviewing the issue as of mid-August 2013, when it is trading for 23.37, Hans Mattern, a buy-side analyst covering Meditec, forecasts that the current dividend of 0.40 will grow by 9 percent per year during the next 10 years. Thereafter, Mattern believes that the growth rate will decline to 5 percent and remain at that level indefinitely Mattern estimates Meditec's beta as 0.90 against the DAX, a 2.42 percent risk-free rate, and his equity risk premium estimate of 5.2 percent. What is the value of Meditec AG based on two-stage dividend discount model? A. 28.26 B. 29.37 C. 27.15 8. Francoise Delacour, a portfolio manager of a US-based diversified global equity portfolio, is researching the valuation of Vinci SA. Vinci is the world's largest construction company, operating chiefly in France (approximately two-thirds of revenue) and the rest of Europe (approximately one-quarter of revenue). Through 2003, Vinci paid a single regular cash dividend per fiscal year. Since 2004 it has paid two dividends per (fiscal) year, an interim dividend in December and a final dividend in May. Although during the past five years total annual dividends grew at less than 3 percent per year, Delacour foresees faster future growth. Having decided to compute the H-model value estimate for Vinci, Delacour gathers the following facts and forecasts: The share price as of mid-August 2013 was 41.70. . The current dividend is 1.77. . The initial dividend growth rate is 7 percent, declining linearly during a 10-year period to a final and perpetual growth rate of 4 percent. Delacour estimates Vinci's required rate of return on equity as 9.5 percent. Using the H-model and the information given, estimate the per-share value of Vinci. A. 38.3 B. 39.5 C. 37.8 9. Based on the table below the stock with the largest present value of growth opportunities (PVGO) is: 7. Carl Zeiss Meditec AG, 65 percent owned by the Carl Zeiss Group, provides screening, diagnostic, and therapeutic systems for the treatment of ophthalmologic (vision) problems. Reviewing the issue as of mid-August 2013, when it is trading for 23.37, Hans Mattern, a buy-side analyst covering Meditec, forecasts that the current dividend of 0.40 will grow by 9 percent per year during the next 10 years. Thereafter, Mattern believes that the growth rate will decline to 5 percent and remain at that level indefinitely Mattern estimates Meditec's beta as 0.90 against the DAX, a 2.42 percent risk-free rate, and his equity risk premium estimate of 5.2 percent. What is the value of Meditec AG based on two-stage dividend discount model? A. 28.26 B. 29.37 C. 27.15 8. Francoise Delacour, a portfolio manager of a US-based diversified global equity portfolio, is researching the valuation of Vinci SA. Vinci is the world's largest construction company, operating chiefly in France (approximately two-thirds of revenue) and the rest of Europe (approximately one-quarter of revenue). Through 2003, Vinci paid a single regular cash dividend per fiscal year. Since 2004 it has paid two dividends per (fiscal) year, an interim dividend in December and a final dividend in May. Although during the past five years total annual dividends grew at less than 3 percent per year, Delacour foresees faster future growth. Having decided to compute the H-model value estimate for Vinci, Delacour gathers the following facts and forecasts: The share price as of mid-August 2013 was 41.70. . The current dividend is 1.77. . The initial dividend growth rate is 7 percent, declining linearly during a 10-year period to a final and perpetual growth rate of 4 percent. Delacour estimates Vinci's required rate of return on equity as 9.5 percent. Using the H-model and the information given, estimate the per-share value of Vinci. A. 38.3 B. 39.5 C. 37.8 9. Based on the table below the stock with the largest present value of growth opportunities (PVGO) is