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Applied Corporate finance problems Problem 3 : ( 5 marks ) You are analyzing the stock of ABC firm where its current stock price is

Applied Corporate finance problems

Problem 3 : ( 5 marks ) You are analyzing the stock of ABC firm where its current stock price is 78 $ . The firm just paid an annual dividend of 5 % and it is expected that the dividend will grow at 4 % in the coming two years and then increase by 5 % per year thereafter . You estimate that the required return of the stock is 12 % . Estimated the stock price of ABC . And , what is remmendation ?

Essays : ( 5 * 1 = 5 marks ) Essay 1 : Briefly discuss what are the senario analysis and the sensitivity analysis of the capital budegting statement and are the differences between them ?

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