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Estimating Company Value Using DDM with Constant Perpetuity Assume that a company's dividends per share are projected to remain at $1.30 each year, and that

Estimating Company Value Using DDM with Constant Perpetuity

Assume that a company's dividends per share are projected to remain at $1.30 each year, and that its cost of equity capital is 5%. Estimate the company's per share stock price.?

Estimating Weighted Average Cost of Capital

Assume that a company has $4 billion in preferred stock and $6 billion in common stock. Also, it pays 6% dividends on preferred stock and its cost of equity capital is 7%. The company has no debt. Compute the company's WACC.?

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