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A. Shahenda purchased 100 shares of Ferro, Inc. common stock for $25 per share one year ago. During the year, Ferro, Inc. paid cash dividends

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A. Shahenda purchased 100 shares of Ferro, Inc. common stock for $25 per share one year ago. During the year, Ferro, Inc. paid cash dividends of $2 per share. The stock is currently selling for $30 per share. If Shahenda sells all of here shares of Ferro, Inc. today, what rate of return would she realize? B. Shemo recently purchased a block of 100 shares of S&O Corporation common stock for $6,000. The stock is expected to provide an annual cash flow of dividends of $4 indefinitely. Assuming a discount rate of 8%, how does the price Shemo paid compare to the value of the stock? C. CIC estimates of Free Cash Flow to Firm (FCFF) for the next 3 years are -$15, $20, and $40 million, after which the FCFF is expected to grow at 3%. The overall firm cost of capital is 13%. If the firm has $50 million in debt and has 20 million shares of stock, what is the price per share

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