The market value of ABCs stock is $40.00. The cost of equity is 12.2%. If the forecasted dividend for the next year is $2, what is the dividend growth rate as preceived by the market?

Select one: a. 7.22% b. 8.43% c. 7.03% d. 5.13%.

A firm practices a dividend payment policy of 60%. The equity has systematic risk factor of 1.50. If the firms earnings growth rate is 5.0% and actual P/E is 16.0, what is the justified P/E using the regression fundamental equation = 10.5 + (2.2*Dividend payout ratio) + (-0.05)*Beta + (13.2*Earning growth rate)?

. 11.18 b. 12.18 c. 11.28 d. 12.41.

The Pitts Limited had EBITDA of $900 million in 2019. The depreciation amount for the period $300m. Firms increased investment in fixed assets by $400m from 2018. Firms overall investment in working capital at the beginning of 2019 was $100m and at the end the working capital investment amount $145m. If the tax rate is 40%, what is the level of FCFF?

a. $165.3m b. $455.0m c. $215.0m d. $175.3m.

Cagiati Enterprises has FCFF of $600 million. Cagiatis before-tax cost of debt is 5.7%, and its required rate of return for equity is 12%. The companys capital structure consisting of 20% debt and 80% equity. The tax rate is 33.00%, and FCFF is expected to grow forever at 5.0%. Firms total debt outstanding with a market value of $2000 million. What is the free cash flow valuation of the firm?

a. $9985.3m b. $9965.3m c. $9975.3m d. $11745.4m.