WACC:

Blast Air 7.27%

Land Air 8.07%

Bal Air 9.25%

Problem 3 You have been asked to calculate the dividend discount model-based price per share for BlastAir, LandAir, and BalAir. You know the following for 2018: Dividend Growth/year BlastAir 3.20 2.8% LandAir 2.10 3.2% BalAir 1.8% 2.70 You already know their WACCs, so you can use them to present value the stream of dividends. Remember that the terminal value uses the perpetuity formula and that it automatically shows the value as of the beginning of the year when it is calculated! 2018 Dividends Dividends Growth/yr. BlastAir Landair BalAir Dividend Stream 2019 2020 TV BlastAir Landair BalAir DDM Value of each Firm $/share BlastAir Landair BalAir