Suppose that the firm in question 2 issues a dividend that grows constantly forever at 5% rate. Next dividend is $5. Using the expected return on the stock you calculated in question 2, calculate the price of the stock. If the firm issued 100,000 stocks, what is the equity value of the firm?

a 2 2. What is a firm's WACC if the stock has a beta of 1.45, Treasury bills yield 5%, and the market portfolio offers an expected return of 14%? In addition to equity, the firm finances 30% of its assets with debt that has a yield to maturity of 9%. Assume the firm is in the 35% marginal tax bracket 14.39% 3. Suppose that the firm in question 2 issues a dividend that grows constantly forever at 5% rate. Next dividend is $5. Using the expected return on the stock you calculated in question 2, calculate the price of the stock. If the firm issued 100,000 stocks, what is the equity value of the firm