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hello what is the answer to both?? Question 1 A given company has the following projected FCF'S: End of Year FCF (Millions SEK) Suppose that
hello what is the answer to both??
Question 1 A given company has the following projected FCF'S: End of Year FCF (Millions SEK) Suppose that the weighted average cost of capital is equal to 5% and that the free cash-flows will grow at a rate equal to 1.5% beyond year 4 Suppose further that its debt is equal to 100 Million SEK and the number of shares is 30 million. What is the share price? (Round your answer to two decimal digits) Question 2 Suppose that in one year only three possible outcomes can take place. In each one of those possible scenarios the return of the stock of the companies Spin and Bang will take the following values with the indicated probabilities: Probabilities Spin ang 9.15 0.1 0.09 -0.03 Suppose that you would like to invest in a portfolio of the two and your investment wealth is equal to 100.000 SEK You would like to allocate 35,000 SEK to Spin and the rest will be invested in Bang. What will be the expected return of your portfolio? (Answers rounded to two decimal digits)Step by Step Solution
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