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It is predicted that the company will grow by 4 percent. every year. Its shares have a beta of 0.8, a long-term government bond yield

It is predicted that the company will grow by 4 percent. every year. Its shares have a beta of 0.8, a long-term government bond yield of 6 percent, and a market risk premium of 5 percent. 10 percent applies to the company. corporate tax rate. Last year's free cash flow for the company EUR 450; free cash flow for owners EUR 400.

a) What is g equal to:

1) 10 2) 8 3) 5 4) 6 5) 4

 b) What is the required profitability equal to:

1) 10 2) 6 3) 8 4) 5 5) 4

c) Calculate the equity value:

a.693

b.6667

c.7500

d.7800

e.750

f.6933

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