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Please see questions and multiple choice answers attached. Please do not give me some generic answers from the website as the sales here is $510.3million,
Please see questions and multiple choice answers attached.
Please do not give me some generic answers from the website as the sales here is $510.3million, not $518million
a. Suppose you believe KCP's initial revenue growth rate will be between 4 % and 11 % (with growth slowing in equal steps to 4 % by year 2011). What range of share prices for KCP is consistent with these forecasts?(Select the best choice below.) A. The range of share prices consistent with these forecasts is from $ 26.94 to $ 21.11. B. The range of share prices consistent with these forecasts is from $ 19.46 to $ 24.10. C. The range of share prices consistent with these forecasts is from $ 18.57 to $ 26.12. D. The range of share prices consistent with these forecasts is from $ 24.42 to $ 23.59. b. Suppose you believe KCP's EBIT margin will be between 7 % and 10 % of sales. What range of share prices for KCP is consistent with these forecasts (keeping KCP's initial revenue growth at 9 % with growth slowing in equal steps to 4 % by year 2011)?(Select the best choice below.) A. The range of share prices consistent with these forecasts is from $ 26.94 to $ 21.11. B. The range of share prices consistent with these forecasts is from $ 24.42 to $ 23.59. C. The range of share prices consistent with these forecasts is from $ 19.46 to $ 24.10. D. The range of share prices consistent with these forecasts is from $ 18.57 to $ 26.12. c. Suppose you believe KCP's weighted average cost of capital is between 10 % and 12 %. What range of share prices for KCP is consistent with these forecasts (keeping KCP's initial revenue growth and EBIT margin at 9 % with growth slowing in equal steps to 4 % by year 2011)?(Select the best choice below.) A. The range of share prices consistent with these forecasts is from $ 24.42 to $ 23.59. B. The range of share prices consistent with these forecasts is from $ 18.57 to $ 26.12. C. The range of share prices consistent with these forecasts is from $ 19.46 to $ 24.10. D. The range of share prices consistent with these forecasts is from $ 26.94 to $ 21.11. d. What range of share prices is consistent if you vary the estimates as in parts (a), (b), and (c) simultaneously? That is: Case 1 Case 2 Revenue growth rate 4 % 11% EBIT margin 7% 10% WACC 10 % 12% (Select the best choice below.) A. The range of share prices consistent with these forecasts is from $ 19.46 to $ 24.10. B. The range of share prices consistent with these forecasts is from $ 26.94 to $ 21.11. C. The range of share prices consistent with these forecasts is from $ 24.42 to $ 23.59. D. The range of share prices consistent with these forecasts is from $ 18.57 to $ 26.12.Step by Step Solution
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