Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 4 Vocal INC at the end of the years to have 1 of 55, the firm has cost of of 12 urrently markets Answer

image text in transcribed
QUESTION 4 Vocal INC at the end of the years to have 1 of 55, the firm has cost of of 12 urrently markets Answer the following questi What is the firm's current growth rate? A 41.6666 B. 40.0000 C. 58 8235 0.3% E. 43.7550 Using the dividend discount model, what is the firm's expected stock price today? F 15 Using the dividend discount model, if this firm decides to pay out 30% of earnings as a G.09 dividend and the firm's return on investment is 13.5% what will be the new stock price? H.2% If the firm decides to pay out 60% of earnings and the firms return on investment is 15% 50.2575 what firm value will the company have? J. 60.2675 K. 45.4545 "STION 5 the assumption of perfect capital markets: Answer the following question: Green CO at the end of the year is expected to have EPS of S5, the firm has an asset beta of 0.8 and the current return on the market is 11% with a risk free rate of 4.9% the current cost of capital for the firm, using the firm's beta? Please write your answer in decimal format, for example an answer of 10% should be written at 0.1 or 1 or and Submit to save and submit. Click Save All Answers to save all answers. QUESTION 4 Vocal INC at the end of the years to have 1 of 55, the firm has cost of of 12 urrently markets Answer the following questi What is the firm's current growth rate? A 41.6666 B. 40.0000 C. 58 8235 0.3% E. 43.7550 Using the dividend discount model, what is the firm's expected stock price today? F 15 Using the dividend discount model, if this firm decides to pay out 30% of earnings as a G.09 dividend and the firm's return on investment is 13.5% what will be the new stock price? H.2% If the firm decides to pay out 60% of earnings and the firms return on investment is 15% 50.2575 what firm value will the company have? J. 60.2675 K. 45.4545 "STION 5 the assumption of perfect capital markets: Answer the following question: Green CO at the end of the year is expected to have EPS of S5, the firm has an asset beta of 0.8 and the current return on the market is 11% with a risk free rate of 4.9% the current cost of capital for the firm, using the firm's beta? Please write your answer in decimal format, for example an answer of 10% should be written at 0.1 or 1 or and Submit to save and submit. Click Save All Answers to save all answers

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Investing

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

14th Edition

0135175216, 978-0135175217

More Books

Students also viewed these Finance questions