Discount the projected dividends at the required rate of return to estimate

the stock's value. Only use years $1-24$ in your computations.

What is the stock's value?

A Between $15\mathrm{.}00$ and $23\mathrm{.}00$

B Between $23\mathrm{.}00$ and $27\mathrm{.}00$

C Between $27\mathrm{.}00$ and $31\mathrm{.}00$

D Between $31\mathrm{.}00$ and $40\mathrm{.}00$

Please go back to the original story. Suppose the stock becomes riskier

from an investor's view. For instance, suppose its beta is now $1\mathrm{.}00$

If there are $90,000,000$ shares outstanding, what is the impact

on the market value of the firm? Hint: first find the new stock price,

then compute how it changed, and multiply that change by the

number of shares outstanding.

A up between $0$ and $160,000,000$

B up between $160,000,000$ and $500,000,000$

C down between $0$ and $160,000,000$

D down between $160,000,000$ and $500,000,000$

Please go back to the original story. Suppose recent financial

results suggest that average EPS projections will all be $$0\mathrm{.}03$ more

than previously thought.

If there are $90,000,000$ shares outstanding, what is the impact

on the market value of the firm? Hint: first find the new stock price,

then compute how it changed, and multiply that change by the

number of shares outstanding.

A up between $0$ and $10,000,000$

B up between $10,000,000$ and $50,000,000$

C down between $0$ and $10,000,000$

D down between $10,000,000$ and $50,000,000$