A firm is projected to have Sales at the end of the current year in the amount of $1 Billion and an operating profit margin of 30% (and this ratio will remain constant). Sales are expected to grow 20% annually in each of the following 4 years. The firm has $700 Million of debt at an interest rate of 5%, and there are no projected increases in the firm's debt levels. Assuming (1) a 20% tax rate and (2) that comparable firms have a trailing P/E multiple of 25x, and this ratio is expected remain constant. The firm has 10 million shares outstanding and pays out 20% of its net income out in the form of dividends. The firm's cost of equity is 12%. What is the intrinsic value of a share of the firm's stock? A firm just paid a $2.50 per share dividend, and the stock currently sells for $50 per share. Dividends are expected to grow at a 10% annual rate for the next five years. What price must you be able to sell the stock for at the end of the 5 years in order for the stock to be fairly valued based on a 15% cost of equity? You purchase a stock at $300 per share. A year later you sell the stock for $260, and also receive a $5 Dividend. Based on your perception of the stock's riskiness, you required a 10% rate of return. What is your alpha