The following information is available for a company, Colin Clark Ltd.

Beta = 0.9

Market Risk Premium (MRP) = 9%

Risk free rate = 1.9%

Weighted average cost of capital (WACC) = 9%

Terminal growth rate = 5%

Common stockholders equity at the beginning of FY2023 = $ 720m

Stock price at the beginning of FY2023 = $ 42

Number of shares outstanding = 80m

What is the cost of equity for Colin Clark Ltd from CAPM?

What is the price-to-book (P/B) ratio for Colin Clark Ltd at the beginning of FY2023?

What is the value per share (in dollars) of Colin Clark Ltd from the Dividend Discount Model (DDM)?

What is the value per share (in dollars) of Colin Clark Ltd from the Residual Income Model (RIM)?

You have also obtained the following analyst consensus forecasts (in cents) for dividends and earnings for Colin Clark Ltd. FY2023 FY2024 DPS 220 242 EPS 420 473 You have also obtained the following analyst consensus forecasts (in cents) for dividends and earnings for Colin Clark Ltd. FY2023 FY2024 DPS 220 242 EPS 420 473