Bu amend theme of a screens just pandan dividend of 10 2 Anwys gey growth in donds forever It Be Donductedy ostane property last Tegured to pay a penalty The ponys 5151 to be end of the son to be paid the end of your att Damon's costofco 13 which Damonds sockt? b. Bu mondhas 31 months out in the woman with what change the Dad's stock price would you expect upon this concerns that the funds is needed by the event e. Would you expect to be able to see mond's stock on hearing this contend make a propan alte Diamond's equity cost of capital is 1345, stock price would be sound to the most cont b. In Blue Dumond has 31 mon shares outstanding and develop 130% with Dumondstock pace would you expect upon this wouncement of the value of the most notabeled by the The change in price per share would be design for your answer positive number for peces de ser fer price decrease Round your answer to the record Would you expect to be able to shorts Damonds stock on hearing the announcement and make a pred the best choice below) OA. You should be able to prostych testock and buying once the market price in deed OB. If this event is information, no trading produkt be possible became ancient more the metalice werely drop to reach OC Decause the stock price is likely to drop ons you should be able to profit by besteck and sling to see them is any cod OD. Nolading propose your regions on short notice mondinence of real vidend of 51002 As we range your own moderne to pay the pas 511 to be done end of the bed the end of you modo 1345 hostock te c. Wat you expected to makontenance and make a prop Dumonds gaty cost of capital 130%, tope would be found to the cond) Dumond has 1 milion escutstanding and word verge cost of capital of 134% what chamonds storice would you expect upon to comes we found needed the The change in price per she would be made a sign for your www positive under for prices egne predecese Round you wower to the root) c. Would you expect to be able to short stenend's stock on the announcement and make a protect the best choice below) OA You should be tieto profit by shortling the stock wetely and bring it once the coded es event is Wormation og poll should be because and make the wintered OC. Because the stock price is key to do this you should be able to peol by bing the stock and two years, the many recovered OD. Notrading proteis possible because your ticke might and transactions on shorte Blue Diamond, Inc., a manufacturer of glass screens just paid an annual dividend of $10.92 Analysts are predicting a 5% per year growth rate in dividends forever. It Blue Diamond just announced that it unexpectedly lost an intellectual property lawsuit and was required to pay a penalty The penalty is $181 million to be paid at the end of this year and $60 million to be paid at the end of next year a. If Blue Diamond's equity cost of capital is 13.4%, what price should Blue Diamond's stock be? b. If Blue Diamond has 31 million shares outstanding and the equity cost of capital remains at 13.4% after losing the lawsuit, what change in Blue Diamond's stock price would you expect upon this announcement? (Assume that the value of Blue Diamond's debt is not affected by the event.) c. Would you expect to be able to sell Blue Diamond's stock on hearing this announcement and make a profit? Explain a. If Blue Diamond's equity cost of capital is 13.4%, its stock price would be $ 1365 (Round to the nearest cent) b. If Blue Diamond has 31 million shares outstanding and a weighted average cost of capital of 13.4% what change in Blue Diamond's stock price would you expect upon this announcement? (Assume that the value of Blue Diamond's debt is not affected by the event) The change in price per share would be $ (Include a sign for your answer positive number for price increase and negative number for price decrease. Round your answer to the nearest cent.) c. Would you expect to be able to short sell Blue Diamond's stock on hearing this announcement and make a profit? (Select the best choice below) OA. You should be able to profit by short selling the stock immediately and buying it once the market price has dropped B. If this event is public information, no trading profit should be possible because in an efficient market the market price will immediately drop to reflect this news OC. Because the stock price is likely to drop on this news, you should be able to profit by buying the stock and selling it two years later, after the firm is fully recovered Click to select your answer(s). Sony TCS Why are Commode team1 Desktop Spel