i am looking for the answers to "slide 5" and "slide 7"
Tople 4 - Equity Valuation - Concepts and Basic Tools (1) Consider the following information for fictional firm Boyd Crowder Corp. (BCC). - Pacc=1.35 - ROE=15% - E(ru)=12% - F(n)=2% Sigle 4 1. What is BCC's cost of equity? ii. Assume that BCC's dividends per share will be $2.50 next year, $3.00 in each of the subsequent three years, and then $3.25 indefinitely. What is the intrinsic value of BCC's share? Slide 5 Assume that BCC's EPS last year were $15 and the firm has a payout ratio of 70%. What is the intrinsic share price of BCC's stock? Slide? Assume that last year BCC paid dividends per share of $4.75. You estimate that dividends will grow at a rate of 12% for the next six years and wil then grow at the longterm rate found on Slide 5. What is the intrinsic price of BCC 's stock? Slide B Assume that BCC also has preferred shares outstanding. These shares have a par value of $14, a dividend rate of 20%, and the cost of preferred shares is 225 basis points less than that of common equity. 1. If the shares are perpetial, what is the intrinsic price per prefetred share? ii. What is the intrinsio price if the shares mature in eight years? Topic 4 - Equity Valuation - Concepts and Bask Toots (ii) Censider the followirg information for fictional fim B Mac inc. (BM) Silng: L. Is the stock over- or under-walued relative to its peors? Tople 4 - Equity Valuation - Concepts and Basic Tools (1) Consider the following information for fictional firm Boyd Crowder Corp. (BCC). - Pacc=1.35 - ROE=15% - E(ru)=12% - F(n)=2% Sigle 4 1. What is BCC's cost of equity? ii. Assume that BCC's dividends per share will be $2.50 next year, $3.00 in each of the subsequent three years, and then $3.25 indefinitely. What is the intrinsic value of BCC's share? Slide 5 Assume that BCC's EPS last year were $15 and the firm has a payout ratio of 70%. What is the intrinsic share price of BCC's stock? Slide? Assume that last year BCC paid dividends per share of $4.75. You estimate that dividends will grow at a rate of 12% for the next six years and wil then grow at the longterm rate found on Slide 5. What is the intrinsic price of BCC 's stock? Slide B Assume that BCC also has preferred shares outstanding. These shares have a par value of $14, a dividend rate of 20%, and the cost of preferred shares is 225 basis points less than that of common equity. 1. If the shares are perpetial, what is the intrinsic price per prefetred share? ii. What is the intrinsio price if the shares mature in eight years? Topic 4 - Equity Valuation - Concepts and Bask Toots (ii) Censider the followirg information for fictional fim B Mac inc. (BM) Silng: L. Is the stock over- or under-walued relative to its peors