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Use the following year-end financial information from Viking, Inc. to answer the questions below. Assume dividends are paid at the end of each year. a)

Use the following year-end financial information from Viking, Inc. to answer the questions below. Assume dividends are paid at the end of each year.

a) What is Vikings expected Payout ratio for 2025 (see missing value in table)?

b) Assuming these numbers are correct, what would be a fair value for Viking, Inc. stock price at the beginning of 2022?

c) Explain what would happen to the value of Viking, Inc. stock if the forecast cost of capital rises from 11% to 13%. No calculations are required, just a clear explanation.

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Viking,Inc.FinancialsBVPS,startofyearEPSROEPayoutratioDividendspershare(DIV)RetainedearningsBVPS,endofyearDividendgrowthrateCostofcapital,rforecastROE,2022-2023forecastROE,2024-2025202212.201.9520.160.410.801.1513.3500.110.160.12202312.201.950.160.410.801.1513.350202413.351.600.120.550.880.7214.070.1202514.071.690.120.970.7214.800.1 Viking,Inc.FinancialsBVPS,startofyearEPSROEPayoutratioDividendspershare(DIV)RetainedearningsBVPS,endofyearDividendgrowthrateCostofcapital,rforecastROE,2022-2023forecastROE,2024-2025202212.201.9520.160.410.801.1513.3500.110.160.12202312.201.950.160.410.801.1513.350202413.351.600.120.550.880.7214.070.1202514.071.690.120.970.7214.800.1

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