Required

1. explain others methods that peter can apply to value the marvell stock. which method is considered to be the best?

2. without doing any calculation and assuming that all other variable remain unchanged, what impact would each of the following

have on the stock price?

a) the firm beta increase.

b) the firm required return decrease.

c) the divided expected next year decreases .

d) the rate of growth in dividends is expected to increase .

please give answer in detail

In January 2021, Peter Parker, the chief financial officer for Marvel Technology Group, was given the task of assessing the impact of a proposed risky investment on the firm's stock value. To perform the necessary analysis, Peter gathered the following information on the firm's stock. During the immediate past 5 years (2016-2020), the annual dividends paid on the fim's common stock were as follows: Year Dividend per share 2020 $1.90 2019 1.70 2018 1.55 2017 1.40 2016 1.30 The firm expects that without the proposed investment, the dividend in 2021 will be $2.09 per share and the historical annual rate of growth (rounded to the nearest whole percent) will continue in the future. Currently, the required retum on the common stock is 14%. Peter's research indicates that if the proposed investment is undertaken, the 2021 dividend will rise to $2.15 per share and the annual rate of dividend growth will increase to 13%. He feels that in the best case, the dividend would continue to grow at this rate each year into the future and that in the worst case, the 13% annual rate of growth in dividends would continue only through 2023, and then, at the beginning of 2024, would return to the rate that was experienced between 2016 and 2020. As a result of the increased risk associated with the proposed risky investment, the required return on the common stock is expected to increase by 2% to an annual rate of 16%, regardless of which dividend growth outcome occurs. Armed with the preceding information, Peter must now assess the impact of the proposed risky investment on the market value of Marvell's stock. To simplify his calculations, he plans to round the historical growth rate in common stock dividends to the nearest whole percent. In January 2021, Peter Parker, the chief financial officer for Marvel Technology Group, was given the task of assessing the impact of a proposed risky investment on the firm's stock value. To perform the necessary analysis, Peter gathered the following information on the firm's stock. During the immediate past 5 years (2016-2020), the annual dividends paid on the fim's common stock were as follows: Year Dividend per share 2020 $1.90 2019 1.70 2018 1.55 2017 1.40 2016 1.30 The firm expects that without the proposed investment, the dividend in 2021 will be $2.09 per share and the historical annual rate of growth (rounded to the nearest whole percent) will continue in the future. Currently, the required retum on the common stock is 14%. Peter's research indicates that if the proposed investment is undertaken, the 2021 dividend will rise to $2.15 per share and the annual rate of dividend growth will increase to 13%. He feels that in the best case, the dividend would continue to grow at this rate each year into the future and that in the worst case, the 13% annual rate of growth in dividends would continue only through 2023, and then, at the beginning of 2024, would return to the rate that was experienced between 2016 and 2020. As a result of the increased risk associated with the proposed risky investment, the required return on the common stock is expected to increase by 2% to an annual rate of 16%, regardless of which dividend growth outcome occurs. Armed with the preceding information, Peter must now assess the impact of the proposed risky investment on the market value of Marvell's stock. To simplify his calculations, he plans to round the historical growth rate in common stock dividends to the nearest whole percent