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need help asap Valley Enterprises Inc has recently paid a dividend (Do) of $ 3.25/share. The dividend growth next year is expected to be 20%

need help asap
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Valley Enterprises Inc has recently paid a dividend (Do) of $ 3.25/share. The dividend growth next year is expected to be 20% and the following year, 15%. From the third year onwards, the company is expected to have constant growth rate in dividend 5%/year for the rest of the life of the corporation. The required return on the firm's equity is 11%/year. Based on this, please answer the following questions based on the above. (24 Points) 1. How far away from now is the firm's horizon date implied in the process of valuation on Valley? A. B. What is the firm's horizon or continuing value? Expected risk per unit of expected return None of the above V. in order to reduce portfolio risk for a portfolio consisting of two equally weighted stock You should choose two stocks which have a perfect negative correlation coefficient. choose a stock and gold May be a stock and a bitcoin Two stocks which have a perfect positive correlation coefficient Two stocks which have a correlation coefficient of zero iv. C. The Security Market Line (SML) is determined by the risk free rate, stocks' betas and the market's risk aversion which determines the slope of the line. 1. Once estimated, however this line is fixed till the next Fed Chair is nominated ii. Till the new president of the country is elected ili. The line is not fixed, it can move up and down, depending on inflation iv The line can change depending not only upon inflation, but also upon the degree of risk aversion in the market You know that the required return on a stock depends on the risk free rate, risk premium on the market portfolio and the stock's beta. Using the concept of the SML, what happens to the required return on the stock when its beta doubles i. The required return also doubles ii. No, the required return can actually go down, because of high volatility ili. The required return would go up, but not in a proportional manner iv. Cannot say without more information D. Weighted Average Cost of Capital (WACC) is an important concept in managing a company's long term investment strategy. The different weights in the WACC concept, such as the cost of debt, the cost of preferred stock and the cost of common equity, may be determined by: i. The industry association the company belongs to ii. Book Value (BV) weights ii. Market Value (MV) weights iv. BV, MV and /or Target weights determined by the financial strategy of the E. company. Typically target weights are preferred. F. The Yield to Maturity (YTM) of wayne Corporation's long term bond issue is 9%. The marginal corporate tax rate of 40%. The best estimate of the after tax cost of debt for Wayne is i. 5.4% iai. iv. 9% 4.5% None of the above 3, A. CCOB Inc has an expected dividend payment scheduled for the coming year to be $ 3.00/share. The stock is expected to have a constant growth rate of 3%/year. The stock is selling for $39.00. Using the DCF method of estimating cost of equity, please calculate the cost of equity capital for CCOB with these given information. Would the cost of equity go up or down if the dividend payment goes up to $4.00/share? (9 points) B. Using the SML approach to estimating cost of equity, please estimate it given: Return of the market portfolio (Rm)-9%, the risk free rate (Arf)-5.5% and The beta for the stock is 1.4. What happens to the cost of equity if RPm (the risk premium on the market portfolio) goes up to calculate the new cost of equity (9 points) A. the WACC and there is no preferred stock, therefore the rest is all common equity. If t after tax debt is 5%, calculate the cost equity capital for Passaic from the above information. (10 points) 4- for Passaic Inc is 8.5%. The weight for debt in the above wACC is 40% he cost of

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