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Help me answer the proble with solutions. infeCrEatyUrs [WCUI Catering The current Covid-IS pandemic affected a lot of industries in the country. The most affected

Help me answer the proble with solutions.

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infeCrEatyUrs [WCUI Catering The current Covid-IS pandemic affected a lot of industries in the country. The most affected businesses are these in the tourism industry which include resorts, hotels and restaurants. Big restaurants in plush locations suffered losses. To minimise the impact, these companies down-sited its operations. BFG Gastronomic industries. the owner of a range of restaurants in lClue-1cm City, was not spared from this impact. The implemented health protocols limited the number of its regular patrons and, to minimize further losses. some of its locations were either closed or the rented spaces were decreased. Dine-in services were shifted to food take outs, while half of the dining service crew were reassigned to perform delivery for caiHn and online orders. The pandemic may have ill effects to the to the economy, but It also created opportunities for other businesses to ourish. Such is the case of WeCrEatytJrs, a catering firm operating in other parts of Metro Manila and some provinces all over the country. WeCrEatyiirs employed a different marketing strategy in sewing its clients. So, instead of folding up or downsizing, its operation and nancial performance actually doubled during the pandemic. WeErEatyurs caught the eye of ivlr. Bobby F. Garcia, the EEG of BFG Gastronomic Industries, while he was going over the financial performance of other players in the food industry, including those that were not listed in the Philippine Stock Exchange {PE-El. After going over the prole and economic performance of WeCreatyUrs, a non-public company, Mr. Garcia got interested in acquiring it for cash. From the nancial statements that he accessed from the Securities and Exchange Commission {SEC} website, WeCrEatyUrs' dividend per share for each of the past years fellow: Mr. Garcia wishes to determine the applicable discount rate to use as an input to the constant growth model. After studying the required retums of companies simihr to WeErEatyUrs that are publicly traded, he believes that an appropriate risk premium on WeCrEAtyUrs is about 595. The risk free rate is currently at Slit. As his financial consultant, ivir. Garcia requested that you help him decide if this is worth investing in by doing the following: a} Given that WeErEatyUrs is expected to pay a dividend of P2950 next year, determine the maximum cash price that BFG GAstronomic should pay for each share of WeCrEatytJrs. b] If there is a decrease in its dividend growth rate of 19i- ifrom that Is shown over the period 2015 to mill}, how much is the market value of a lilll'el'iIrEatlers" stock? c} If the risk premium is decreased to 495, how much is the estimate market price of WeCrEat-Urs' stock? cll Aside from dividend growth, what other factors should lvlr. Garcia consider before acquiring WeCrEatytJrs

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