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Answer the following questions: a. In dollars and cents, what is the fair value of a stock that has just paid a dividend of $12.54,

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Answer the following questions: a. In dollars and cents, what is the fair value of a stock that has just paid a dividend of $12.54, which is expected to grow indefinitely at 1.88%pa, and that has a cost of capital of 12.36%? (1 mark) b. If the historical dividend yield of a stock is 4.57% and the stock's cost of capital is 10.58%, what is its expected growth rate in percentage terms 2 decimal places? (1 mark) c. In dollars and cents, what is the maximum you would pay per share for a company that generated profits of $6.98 per share on its 4387.5million shares from which it paid a dividend of $4.66 per share and has equity capital of $378bn if its cost of capital is 15.55%? (1 mark) d. In dollars and cents, what is the maximum you would pay per share for a company that o generated profits of $12.774 per share, o has 765million shares on issue, O had just paid a dividend of $9.695 per share, o which according to its accounts has equity capital of $134.5bn, o has a standard deviation of 44.63%, o where the standard deviation of the market is 18.94%, o where the return of the market is 14.65%, O where the stock's correlation with the market is 0.84, and the risk-free rate of return is 5.25%? (2 marks) O e. In dollars and cents, what is the maximum price you would pay for the shares of a company that had the following operating cash flow and capital expenditure over the next four years provided in the table below when. o Your estimated value of the company in the fifth year, when you planned to sell your shares in the company is $970m, o the weighted average cost of capital of the company is 12.86%, O its value of debt is $325m, and there are 40m outstanding shares? (3 marks) O

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