Show a step-by-step solution to the following:

1. Based on the corporate valuation model, ALVEZ Inc.'s value of operations is P475 million. The balance sheet shows P90 million of notes payable, P30 million of long- term debt, P40 million of preferred stock, and P100 million of common equity. The company has 10 million shares of stock outstanding. What is the best estimate of the stock's price per share?

2. TOMNOB Inc. has an expected dividend next year of $5.60 per share, a growth rate of dividends of 10 percent, and a required return of 20 percent. The value of a share of TOMNOB Inc.'s common stock is _________.

3. A firm has experienced a constant annual rate of dividend growth of 9 percent on its common stock and expects the dividend per share in the coming year to be $2.70. The firm can earn 12 percent on similar risk involvements. The value of the firm's common stock is _________.

4. Suppose ESTORBA Corporation's projected free cash flow for next year is FCF= P180,000, and FCF is expected to grow at a constant rate of 6.5%. If the company's weighted average cost of capital is 11.5%, what is the value of its operations?

5. You must estimate the intrinsic value of Noe Technologies' stock. The end-of-year free cash flow (FCF) is expected to be P24.00 million, and it is expected to grow at a constant rate of 7.0% a year thereafter. The company's WACC is 10.0%, it has P125.0 million of long-term debt plus preferred stock outstanding, and there are 15.0 million shares of common stock outstanding. What is the firm's estimated intrinsic value per share of common stock?

6. Kale Inc. forecasts the free cash flows (in millions) shown below. If the weighted average cost of capital is 11.0% and FCF is expected to grow at a rate of 5.0% after Year 2, what is the Year 0 value of operations, in millions?

Year 1 2

Free Cash flow. -P50 P135

7. Based on the corporate valuation model, ALVEZ Inc.'s value of operations is P475 million. The balance sheet shows P90 million of notes payable, P30 million of long- term debt, P40 million of preferred stock, and P100 million of common equity. The company has 10 million shares of stock outstanding. What is the best estimate of the stock's price per share?

8. ESTORBA Company's last dividend was P1.25. The dividend growth rate is expected to be constant at 30% for 3 years, after which dividends are expected to grow at a rate of 6% forever. If the firm's required return (r ) is 11%, what is its current stock

price?

9. NG Inc.'s stock currently sells for P35.25 per share. The dividend is projected to increase at a constant rate of 4.50% per year. The required rate of return on the stock, r , is 11.50%. What is the stock's expected price 5 years from now?