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c. In dollars and cents, what is the maximum you would pay per share for a company that: generated prots of $3.50 per share on
c. In dollars and cents, what is the maximum you would pay per share for a company that: generated prots of $3.50 per share on its 1,464,960,000 shares from which it paid a dividend of $0.92 per share and has equity capital of $51bn if its cost of capital is 8.35%? (1 mark) U- e. In dollars and cents, what is the maximum you would pay per share for a company that: generated prots of $2.695 per share had 765 million shares on issue had just paid a dividend of $2.02 per share that according to its accounts has equity capital of $13.45lon has a standard deviation is 47.61%, where the standard deviation ofthe market is 18.94%, where the return of the market is 8.65%, where the stock's correlation with the market is 0.85 and the risk-free rate of return is 3.60%? (2 marks) g. In dollars and cents, what is the maximum price you would pay for the shares of a company that had the operating cash flow and capital expenditure over the next four years provided in the table below when: 0 Your estimated value otthe company in the fourth year, when you planned to sell your shares in the company is $984m a the weighted average cost of capital of the company is 13.76%, 0 its value of debt is $272m and a there are 40m outstanding shares? (3 marks) Period Operating cash flow Capital expenditure 1 $35,000,000 $7,000,000 2 $37,100,000 $6,500,000 3 $39,850,000 $6,000,000 4 $42,700,000 $6,500,000 i. What is the PE ratio for a stock which has a payout ratio of 65%, a return on equity of 12.50% and a cost of capital of 13.66%? (2 marks)
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