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Please answer ASAP and as many as possible FIN 315 - 05 Business Finance 2020 Fall Homework: Chapter 07 Homework Save Score: 0 of 1

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Please answer ASAP and as many as possible

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FIN 315 - 05 Business Finance 2020 Fall Homework: Chapter 07 Homework Save Score: 0 of 1 pt 4 5 of 10 (5 complete) HW Score: 50%, 5 of 10 pts P7-14 (similar to) Question Help Common stock value-Variable growth Personal Finance Problem Home Place Hotels, Inc., is entering into a 3-year remodeling and expansion project. The construction will have a limiting effect on earnings during that time, but when it is complete, it should allow the company to enjoy much improved growth in earnings and dividends. Last year, the company paid a dividend of $1.80. It expects zero growth in the next year. In years 2 and 3, 6% growth is expected, and in year 4, 17% growth. In year 5 and thereafter, growth should be a constant 9% per year. What is the maximum price per share that an investor who requires a return of 15% should pay for Home Place Hotels common stock? The maximum price per share that an investor who requires a return of 15% should pay for Home Place Hotels common stock is $ . (Round to the nearest cent.) Enter your answer in the answer box and then click Check Answer. ? All parts showing Clear All Check AnswerFIN 315 - 05 Business Finance 2020 Fall Homework: Chapter 07 Homework Save Score: 0 of 1 pt 6 of 10 (5 complete) HW Score: 50%, 5 of 10 pts P7-15 (similar to) Question Help Common stock value-Variable growth Lawrence Industries' most recent annual dividend was $1.63 per share (Do =$1.63), and the firm's required return is 16%. Find the market value of Lawrence's shares when dividends are expected to grow at 8% annually for 3 years, followed by a 5% constant annual growth rate in years 4 to infinity. The market value of Lawrence's shares is $ . (Round to the nearest cent.)Homework: Chapter 07 Homework Save Score: 0 of 1 pt 7 of 10 (5 complete) HW Score: 50%, 5 of 10 pts P7-18 (similar to) Question Help Using the free cash flow valuation model to price an IPO Personal Finance Problem Assume that you have an opportunity to buy the stock of CoolTech, Inc., an IPO being offered for $4.01 per share. Although you are very much interested in owning the company, you are concerned about whether it is fairly priced. To determine the value of the shares, you have decided to apply the free cash flow valuation model to the firm's financial data that you've accumulated from a variety of data sources. The key values you have compiled are summarized in the following table, a. Use the free cash flow valuation model to estimate CoolTech's common stock value per share. b. Judging by your finding in part a and the stock's offering price, should you buy the stock? c. On further analysis, you find that the growth rate in FCF beyond 2023 will be 3% rather than 2%. What effect would this finding have on your responses in parts a and b? a. The value of CoolTech's entire company is $ . (Round to the nearest dollar.) Enter your answer in the answer box and then click Check Answer. ? 5 parts remaining Clear All Check AnswerHomework: Chapter 07 Homework Save Score: 0 of 1 pt 9 of 10 (5 complete) HW Score: 50%, 5 of 10 pts P7-21 (similar to) * Question Help Management action and stock value REH Corporation's most recent dividend was $2.41 per share, its expected annual rate of dividend growth is 5%, and the required return is now 15%. A variety of proposals are being considered by management to redirect the firm's activities. Determine the impact on share price for each of the following proposed actions. a. Do nothing, which will leave the key financial variables unchanged. b. Invest in a new machine that will increase the dividend growth rate to 9% and lower the required return to 14%. c. Eliminate an unprofitable product line, which will increase the dividend growth rate to 9% and raise the required return to 19%. I. Merge with another firm, which will reduce the growth rate to 2% and raise the required return to 17%. e. Acquire a subsidiary operation from another manufacturer. The acquisition should increase the dividend growth rate to 9% and increase the required return to 19%. a. If the firm does nothing that will leave the key financial variables unchanged, the value of the firm will be $ . (Round to the nearest cent.) Enter your answer in the answer box and then click Check Answer. ? 4 parts remaining Clear All Check AnswerFIN 315 - 115 Business Finance ZDZD Fall Homework: Chapter 07 Homework sae Score: D of 1 pt 4 1a or 1D {5 complete} 7 I H"! Score: 50%, 5 of 10 pts PT-23 {similar to) 55 Question Help :1 IntegrativeRisk and valuation Giant Enterprises' stock has a required retum of 15.?'iiii. The company, which plans to pay a dividend of $2.1 5 per share in the coming year, anticipates that its future dividends will increase at an annual rate consistent with that experienced over 2D13219 period, when the following dividends were paid: . a. if the riskfree rate is 5%, what is the risk premium on Giant's stock? b. Using the constantgrowth model, estimate the value of Giant's stock. {Hint Round the computed dividend growth rate to the nearest whole percent.) 1:. Explain what effect, if any, a decrease in the risk premium would have on the value of Giant's stock. a. lfthe riskfree rate is 5%, the risk premium on Giant's stock is Bill. {Hound to one decimal place} Enter your answer In the answer box and then click Check Answer. parts -

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