Fill the table

Company pays all of its earnings as dividends, so EPS-DPS We assume that RF=6% and RM=10% Since all earnings are paid out as dividends, no retained earnings are put back into the business, and growth in EPS and DPS is zero. Hence zero growth stock price model will be used to calculate the price. Po=DPS/K WACC=W.K.(1-T) + (WK) = (D/A) K (1-T)+(1-D/A) K. DEBT/ASSETS DEBT/EQ. WACC % AFTER TAX KD ESTIMATED BETA K = (RF+(RM-RF)b) % EXPEC TED EPS (AND) DPS $ ESTIMA TED PRICE $ wd % Kd (1-1) 0 4.8 2.40 1.5 =6+(10-6)1.5= 12% 2.4/0.12= $20 0(0.048)+1(0.12)=12% 10 4.8 2.56 1.6 20 5 30 5.4 2.75 2.97 3.20 3.36 42.86 66.67 100 1.73 1.89 2.10 2.40 40 50 60 6 7.2 50 9 3.30 2.85