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Need answer ASAP!!! Dont have to explain too much once the correct answer is provided. Thank you for ALL your help! 12) 13) Nine Point

Need answer ASAP!!! Dont have to explain too much once the correct answer is provided.

Thank you for ALL your help!

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13)

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Nine Point Industries recently paid its annual dividend of $2.33, and reported an ROE of 4%. The firm pays out 50% of its earnings as dividends. The stock has a beta of 1.29. The current risk-free rate is 3.50% and the market return is 18.00%. Assuming that CAPM holds, what is the intrinsic value of this stock? DO NOT ENTER THE $ SIGN. ALSO, ENTER YOUR ANSWER AS A POSITIVE NUMBER. SET YOUR CALCULATOR TO 4 DECIMAL PLACES AND ROUND TO TWO DECIMAL PLACES AT THE END, i.e. IF YOUR ANSWER IS 33.4343 ENTER IT AS 33.43 ONLY Nine Point Industries wants to maintain its capital structure of 40% debt and 60% equity. The firm's tax rate is 34%. The firm can issue the following securities to finance the investments: Bonds: Mortgage bonds can be issued at a pre-tax cost of 8.6 percent. The firm can obtain bank loans at a pre-tax cost of 10 percent. Common Equity: Some retained earnings will be available for investment. In addition, new common stock can be issued at the market price of $57. Flotation costs will be $2 per share. The recent common stock dividend was $8.40. Dividends are expected to grow at 5% in the future. What is the cost of capital using bank loans and external equity? SET YOUR CALCULATOR TO 4 DECIMAL PLACES. PLEASE INPUT THE ANSWER IN PERCENT ROUNDING IT TO 2 DECIMALS. DO NOT INCLUDE % SIGN, E.G. INSTEAD OF 9.9911% INPUT 9.99

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