subject: corporate finance

can you pls answer this qustions pls!!!

QUESTION 1 Write answers up to two decimal places Nachman Industries just paid a dividend of Do = $0,50. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The dividends for Yr 1 is $ Yr 2 is s Yr 3 onwards is $ The company's beta is 1.20, the market risk premium is 5% and the risk-free rate is 3%, the required rate of return on the stock % is The best estimate of the value of the stock at the end of year 2 (P2) is $ The best estimate of the current value of the stock is $ QUESTION 2 - Write answers up to two decimal places If D1 = $1.25. g (which is constant) = 5,5%, and Po = $41 then the dividend yield is = % % the capital gains yield is = % the stock's expected total return for the coming year = QUESTION 3 Misra Inc. forecasts a free cash flow of $20 million in Year 3, i.e. att = 3, and it expects FCF to grow at a constant rate of 5.5% thereafter. If the weighted average cost of capital (WACC) is 10.0% and the cost of equity is 15.0%, then what is the horizon, or continuing, value in millions at t = 3? O a. 469 b.492 Oc 222 O d. 506 e. 363 QUESTION 4 Stocks A and B have the following data. The market risk premium is 6.0% and the risk-free rate is 6.4% Assuming the stock market is efficient and the stocks are in equilibrium and these stocks give the same amount of dividend A B Beta 1.10 0.90 Constant growth rate 7.00% 7.00% Fill in the following 1. The required rate of return on Stock Ais 2. The stock price of Stock A is 3. The dividend yield of Stock Ais (higher lower than Stock B. (higher/lower) than Stock B, (higher/lower) than Stock B Suppose Boyson Corporation's projected free cash flow for next year is FCF 1 = 5590,000 and FCF is expected to grow at a constant rate of 6.5% Assume the firm has zero non-operating assets. If the company's weighted average cost of capital is 11.5%, then what is the firm's total corporate value? O a. $9,204,000 O b. $11.564.000 O c $11.800,000 O d. 59,676,000 O e. $13,216.000 Write your answers up to two decimal places Ryan Enterprises forecasts the free cash flows shown below. The weighted average cost of capital is 13.0%, and the FCFs are expected to continue growing at a 5.0% rate after Year 3 Year 1 2 3 FCF -$15,0 $10,0 $60.00 AN CA 1. What is the firm's total corporate value? $ 2. If the company's market value of debt is $S200 and there is excess cash of $20.00. If the number of equity shares are 10, then what is the intrinsic value per share? $ QUESTION 7 As per yahoo finance, the stock price of Home depot as of Nov 1st 2021 is $366,48 and EPS (TTM) is $14.20 (TTM= Trailing Twelve Months) The Home Improvement Industry P/E (TTM) ratio is 27.45 1. Based on the Multiple Approach to Valuation, what should be the intrinsic value of Home Depot? 2. Is the Home Depot stock overvalued or undervalued ? QUESTION 8 Gray Manufacturing is expected to pay a dividend of $1.25 per share at the end of the year (D1 = $1.25). The stock sells for $24.50 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever What is the equilibrium expected growth rate? O a. 6.53% O b. 4.32% O c.5.94% d.4.16% O e. 5.40% QUESTION 9 Molen Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $3 per share If the required return on this preferred stock is 6.5% then at what price should the stock sell? O a. $46.15 O b. $45.69 O c. $36.46 O d. 543.38 O e. $57.23