Question 13 What is the value of B5? A 1 Firm Value (FCF model) 2 Debt Value 3 Preferred Stock Value 4 Outstanding Shares 5 Common Stock Value per Share 6 O $17 O $4 O $13 O $25 B $125,000 $40,000 $20,000 5,000 ? C What is the correct formula for B5? 1 2 Last Dividend 3 4 5 6 7 A Growth Rate Required Return Value three years from today O=B2*(1+B3)^3/(B4-B3) O=B2*(1+B3)^4/(B4-B3) O =(B2*(1+B3)/(B4-B3))^3 OB2*(1+B3)/(B4-B3) B $3.50 2% 8% ? C Question 15 Which of the following formulas determines the value of the stock using the Earnings Model in B6? A 1 Next Period EPS 2 Next Period Dividends 3 Required Return 4 Return on Equity 5 Growth Rate 6 Value 7 A B 1.5 0.5 9% 12% 5.20% ? O=B1/B3+((B1-B2)*(B4/B3-1))/(B3-B5) OB1/B3+(B1*(1-B3)*(B3/B4-1))/(B3-B4) O=B1/B3+(B1*(1-B2) (B4/B3-1))/(B3-B5) O=B1/B3+(B2*B4/B3-1)/(B3-B5) k