Question 8 (3.33 points) A company has a leading EPS of $3, and a book value of equity of $34,943 million. The median peer group P/E is 18.75. Assuming there are no differences in the fundamentals among the peer group and the company 3Y, find an estimate of the company stock price using the price multiples. 1) $44.05 O2) $56.25 3) $66.35 O4) $71.10 Question 9 (3.33 points) You own a portfolio half of which is invested in T-bonds and the rest is equally invested in stock A and stock B. The beta of your portfolio is equal to the market beta. If stock A has a beta of 2.6, how much is the beta of stock B? 1) 0.89 2) 1.00 O 3) 1.4 O4) 1.7 Question 10 (3.33 points) The common share of Atlanta, corp., is selling for $42 a share and investors require a 15% return on the stock. If two thirds of the return on this stock are derived from dividends yield and the other one third is derived from capital gain yield. What is the amount of the current dividend Do? 1) 3.65 2) $3.86 3) $4.00 O4) $4.15