Question 5

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4.- The company Bidu has just issued preferred stock with a dividend payment of 20 forever. The market price for this preferred stock is 500 . Which is the required return? (10 points) 5. The company Jetta has a net income of 500.000. The company has 100 shares outstanding and the market price for the shares is 25 . Which is the PE ratio? (10 points) 6. DAP Services Corp. has yearly sales of 30 million and costs of 15 million (depreciation 5 Mio). The company's balance sheet shows debt of 100 million and cash of 20 million. There are 1 Million shares outstanding and the industry EVEBITDA multiofe - 5