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Click to see additional instructions XYZ is evaluating a project using the capital asset pricing model (CAPM). Relevant information is presented in the F Return
Click to see additional instructions XYZ is evaluating a project using the capital asset pricing model (CAPM). Relevant information is presented in the F Return Beta Asset A 5% 0 Asset B 11% 1 Project 0.66 a. The required rate of return for the project is 0.09 %. (Round to two decimal places.) b. The risk premium for the project is 0.06 Please use only accepted characters within numeric response fields. Save Copyright 2003-20 Time Remaining: 01:12:12 A Hide Time Remaining A Click to see additional instructions XYZ corporation has $3,320,000 of debt and $760,000 of preferred stock. The corporation's weighted average cost of capital (WACC) is calculated 11%. The estimated free cash flows over the next 5 years, 2016 through 2020, are given in the table below. The corporation expects its free cash flow to grow at a constant rate of 3% after 2020. Year FCF 2016 $ 300,000 2017 $ 350,000 2018 $ 420,000 2019 $ 470,000 2020 $ 520,000 (Round to the nearest cents; use two decimals. The answers are in terms of dollars; provide your answers without the dollar sign, e.g., 1234.56) a. Calculate the entire value of corporation, using the free cash flow valuation model. $ b. Calculate the common stock value of the corporation. $ C. If the corporation has 100,000 shares of common stock outstanding, calculate the value per share. $
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