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PLEASE IS URGENT 4.- Bachoco has a sustainable ROE of 24% and a dividend policy that obliges Bachoco to pay 42% of the profit for

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PLEASE IS URGENT 4.- Bachoco has a sustainable ROE of 24% and a dividend policy that obliges Bachoco to pay 42% of the profit for the year. Under a discounted dividend model, and using Gordon's model, your dividend in year 10 is P $ 5.6 / share. Bachoco is trading at P $ 80.3 on the open market. a) Bachoco's WACC is 8.6%, the cost of equity is 10.2% and the cost of debt is 6.8%. Calculate the terminal value of Bachoco? b) Recently, Bachoco decided to issue P$ 368mn pesos of debt in order to refinance its short-term debt. Bachoco expects to reduce its cost of debt by c $ 8 / share. Today, Bachoco is trading at 14.8x 2020 PE, 6.4x 2020 EV / EBITDA and ROIC of 10.2%. How should the multiples derived from the issuance of debt change? c) The bond is a bond convertible to shares at a strike price of P$ 107. Graph the concavities PLEASE IS URGENT 4.- Bachoco has a sustainable ROE of 24% and a dividend policy that obliges Bachoco to pay 42% of the profit for the year. Under a discounted dividend model, and using Gordon's model, your dividend in year 10 is P $ 5.6 / share. Bachoco is trading at P $ 80.3 on the open market. a) Bachoco's WACC is 8.6%, the cost of equity is 10.2% and the cost of debt is 6.8%. Calculate the terminal value of Bachoco? b) Recently, Bachoco decided to issue P$ 368mn pesos of debt in order to refinance its short-term debt. Bachoco expects to reduce its cost of debt by c $ 8 / share. Today, Bachoco is trading at 14.8x 2020 PE, 6.4x 2020 EV / EBITDA and ROIC of 10.2%. How should the multiples derived from the issuance of debt change? c) The bond is a bond convertible to shares at a strike price of P$ 107. Graph the concavities

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