Give a synthesis of the financial data related to long-term financing needs for an organization based on the following information CAPM and Required Return: The company has a beta of 1.1, and the closest competitor has a beta of 0.30. The required return on an index fund that holds the entire stock market is 11%. The risk-free rate of interest is 4.5%. By how much does your companys required return exceed your competitors required return? Constant Growth Valuation: The company is expected to pay a $1.80 per share dividend at the end of the year (i.e., D1 = $1.80). The dividend is expected to grow at a constant rate of 4% a year. The required rate of return on the stock, rs, is 10%. What is the stocks current value per share? Nonconstant Growth Valuation: The company recently paid a dividend, D0, of $2.75. It expects to have nonconstant growth of 18% for 2 years followed by a constant rate of 6% thereafter. The firms required return is 12%. o How far away is the horizon date? o What is the firms horizon, or continuing, value? o What is the firms intrinsic value today, P0? Weighted Average Cost of Capital: The company has a target capital structure of 35% debt and 65% common equity, with no preferred stock. Its before-tax cost of debt is 8%, and its marginal tax rate is 40%. The current stock price is P0 = $22.00. The last dividend was D0 = $2.25, and it is expected to grow at a 5% constant rate. What is its cost of common equity and its WACC? Capital Budgeting Criteria: The company has an 11% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: What is each projects NPV? What is each projects IRR? What is each projects MIRR? (Hint: Consider Period 7 as the end of Project Bs life.) From your answers to parts a, b, and c, which project would be selected? If the WACC was 18%, which project would be selected? Construct NPV profiles for Projects A and B. Calculate the crossover rate where the two projects NPVs are equal. What is each projects MIRR at a WACC of 18%? 1: CAPM and Required Return Calculates how much their companys required return exceeds their competitors required return. 2: Constant Growth Valuation calculates the stocks current value per share. 3: Nonconstant Growth Valuation calculates how far away the horizon date is, the firms horizon (or continuing) value, and the firms intrinsic value today, P₀