Dantzler Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 3 years, after which FCF is expected to grow at a constant 5% rate, Dantzler's WACC is 1 196. 8. Year 1 2 17 FCF (Smillions)-11 45 What is Dantzler's horizon or continuing value? What is the firm's value today? a. b. 9. A stock's returns have the following distribution: Rate of return 30% 14% 11% Probability of demand Demand for company's products Weak Below Average Average Above Average Strong 0.3 0.3 0.2 | 20% 4596 Calculate the stock's expected return, standard deviation, and coefficient of variation. 10. Assume that the risk-free rate is 5.5% and the required return on the market is 12%. What is the required rate of return on a stock with a beta of 2? 11, A stock has a required return of 9%, the risk-free rate is 45%, and the market risk premium is 3%. What is the stock's beta? If the market risk premium increased to 5%, what would happen to the stock's required rate of return? Assume that the risk-free rate and the beta remain unchanged. a. b