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Question 1 1 pts EAR=(1+nominalrateper)time1 P0=(D1)/(Rsg) Value of Operating Assets (Vo)=(FCF1)/(WACCCg) Tot Return = DY + CGY Stock Price (Corp Value) = (Value of operating
Question 1 1 pts EAR=(1+nominalrateper)time1 P0=(D1)/(Rsg) Value of Operating Assets (Vo)=(FCF1)/(WACCCg) Tot Return = DY + CGY Stock Price (Corp Value) = (Value of operating assets + value of nonoperating assets - value of debt/preferred) / Num Shares FCF=EBIT(1T)+Dep& Amort )( Cap Expenditures - delta NOWC) What should be the price of a stock that pays $5 of dividends at the end of the year, has a growth rate of 5%, and a beta of 2.0. Assume a market premium of 6% and a risk-free rate of 3%. $70 $60 $40 $50 $30
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