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From the initial total value of $161.85, change the terminal growth rate to 2%. What happens to the value of the stock? $157.63 $122.94 $100.57
From the initial total value of $161.85, change the terminal growth rate to 2%. What happens to the value of the stock? $157.63 $122.94 $100.57 $195.77 QUESTION 2 Leaving the terminal growth rate at 2%, change the growth rate (growth rate from year 4 to year 10) in cell D11 to 8%. What is the new value for the stock? $122.94 $149.41 $96.77 $167.89 QUESTION 3 Leaving the terminal growth rate at 2% and the intermediate term growth rate at 8%, raise the third year earnings estimate to $12.50. What is the stock's new value? $188.44 $169.56 $103.22 $147.36 QUESTION 4 What would an analyst working for Fidelity or the GE Pension fund be characterized as? Buy Side Sell Side QUESTION 5 Does the book think employees generally benefit from working at a company that maximizes the present value of long term free cash flow? No Yes The book sees it going both ways QUESTION 6 If a company has an ROIC on new investments that is lower than their cost of capital, does growth add to the firm's value? No Yes It depends on the firm's dividend payout policy
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