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cmid-4873906 FINS2615-Intermediate Business Finance T3 2022 1. ABC stock sells at $30.5 and the next dividend is expected to be $2.25. Dividends are expected to
cmid-4873906 FINS2615-Intermediate Business Finance T3 2022 1. ABC stock sells at $30.5 and the next dividend is expected to be $2.25. Dividends are expected to be paid for the foreseeable future. What is the market's assumed growth rate of dividends for ABC stock if the required return rate is 16.07 % (Please enter as a percentage to 2 decimal places) Your last answer was interpreted as follows: 8.62 ABC has an EBITDA of $36 million ABC also has 5.5 million shares outstanding and debt of $85 million. Firms in the industry have an average enterprise value to EBITDA multiple of 7.2 (Note: Please ignore cash in your calculations 2. What is your best estimate of ABC's stock price using the method of comparables? (Please enter to 2 decimal places) Your last answer was interpreted as follows: 31.67 3. What is ABC's debt-to-equity ratio? (Please enter to 2 decimal places) Your last answer was interpreted as follows: 0.49 A comect answer is 8.62, which can be typer 31.67 answer is 31.6
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