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Break down for question 5,6,7 QUESTION 5 HSM Energy estimates that its average-risk projects have a WACC of 10%, its below-average risk projects have a

Break down for question 5,6,7

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QUESTION 5 HSM Energy estimates that its average-risk projects have a WACC of 10%, its below-average risk projects have a WACC of 9%, and its above-average risk projects have a WACC of 12%. Which of the following projects (A B, and C) should the company accept? Project B is of below-average risk and has a return of 8.5%. Project C is of above-average risk and has a return of 11%. Project A is of average risk and has a return of 9% None of the projects should be accepted. QUESTION 6 What's value of a preferred stock if we assume it has an annual dividend $2 per share and the required rate of return is 5%? $ 5 $ 40 $ 50 $ 100 QUESTION 7 Other than dividend growth model, we can employ the Market Multiple Analysis method for stock valuation. We suppose a firm's estimated earnings per share is $1.5. The average price to earnings (P/E) ratio for similarly publicly traded firms is 10. What's the firm's expected stock price? $15.0 $17.0 $22 5 $25.0

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