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D. If current EPS were equal to 55. 15 and the PE ratio is 12 times higher than the industry average of 7, what would

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D. If current EPS were equal to 55. 15 and the PE ratio is 12 times higher than the industry average of 7, what would the stock price be? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Stock pece H. By what doar amount is the stock price in part oferent from the stock price in parti (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Amount L. With regard to the stock price in part indicate which direction it would move it (1) D1 increases (2) Ke increases Stack price increases Stock price decreases Stock price increases Beasley Ball Bearings paid a 54 dividend last year. The dividend is expected to grow at a constant rate of 3 percent over the next four years. The required rate of return is 13 percent (this will also serve as the discount rate in this problem). Use Socendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. Compute the anticipated value of the dividends for the next four years. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) D1 DZ D3 04 Anticipated Value 5 4.12 $ 424 $ 4.37 $ 4.50 b. Calculate the present value of each of the anticipated dividends at a discount rate of 13 percent (Do not round intermediate calculations. Round your final answers to 2 decimal places.) 01 02 D3 04 Total PV of Dividends $ 365 5 5 3.03 $ 2.76 5 12.76 * Paused c. Compute the price of the stock at the end of the fourth year (PA) (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Stock price at Year 4 5 46.37 d. Cakulate the present value of the year 4 stock price at a discount rate of 13 percent. (Do not found intermediate calculations. Round your final answer to 2 decimal places.) Present value of Year 4 stock price 5 28.44 .. Compute the current value of the stock. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Current value 5 41.20 1. Use the formula given below to show that it will provide approximately the same answer as parte. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) D Po K-9 Current value 5 4120

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