Equity Asset Valuation Workbook 1st Edition John D. Stowe, Thomas R. Robinson, Jerald Pinto, Dennis W. McLeavey - Solutions

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10. Pharmavest is an investment advisory firm that focuses solely on companies within the health care (HC) sector. The firm conducts research and manages several commingled health sector funds. Pharmavest is conducting an analysis of health sector companies that have business exposures to the
9. A. Based on targets for inflation and overall economic growth rate and on actual observations of inflation and economic growth rates, apply the Taylor rule to estimate what short-term interest rate level should be an appropriate target for monetary authorities.B. Explain why the monetary action
8. Based on the trends that may be calculated from the following economic measures, determine which of the countries below would be expected to achieve higher economic growth rates over the next year if current trends are sustained? Justify your response.Croatia Czech Republic (millions of kuna)
7. A. How might an analyst use the data reflected below to confirm her suspicion that Brazil is currently experiencing an output gap?B. Given your response in Part A, would you expect inflation over the next year to accelerate or decline?Variable 3/31/2002 3/31/2003 3/31/2004 GDP (index) 129.0
6. Consider the information given in the following table:Eurodollar Short Rates (as of start of month)Spread:Month 1-Month Rates 6-Month Rates 6-Month vs 1-Month Jan 2000 5.71% 6.14% 43 bps Feb 2000 5.80 6.26 46 Mar 2000 5.97 6.35 38 Apr 2000 6.07 6.48 41 May 2000 6.47 6.93 46 Jun 2000 6.58 6.90 32
5. An analyst is reviewing various asset alternatives and is presented with the following information directly pertaining to the broad equity market in Switzerland and various industries within the Swiss market that are of particular investment interest.Expected risk premium for overall global
4. An Australian investor currently holds anA$240 million equity portfolio. He is considering rebalancing the portfolio based on an assessment of the risk and return prospects facing the Australian economy. Information pertaining to the Australian investment markets and the economy has been
3. An investor is considering adding three new securities to his internationally focused fixed-income portfolio. The securities under consideration are as follows:• 1-year U.S. Treasury note (noncallable)• 10-year BBB/Baa rated corporate bond (callable)• 10-year mortgage-backed security (MBS)
2. Seth Bildownes is an analyst who has prepared forecasts regarding the current capital market environment. He recently gave his presentation to the managing directors of his firm. Excerpts of his presentation follow:‘‘Noting that year-end holiday sales have been weak over the past several
1. An analyst is assembling data for use in her firm’s expectations-setting process. Several historical measures have been collected and used to set expectations on inflation and consumer consumption trends. Previously, only the most recent 25 years of historical data concerning these measures
9. Winthrop Bank:Winthrop Bank is a commercial bank with operations inNorth America. Evaluate the effect of each of the following scenarios on the bank’s investment objectives, constraints, or risk-taking ability.A. The target average maturity of loans is increased,with overall risk tolerance
8. Hannibal Insurance Company (adapted from the 1997 CFA Level III Exam):U.S.-based Hannibal Insurance Company sells life insurance, annuities, and guaranteed investment contracts (GICs) and other protection- and savings-based products.The company has traditionally managed its investments as a
7. Donner Life Insurance (adapted from the 2000 CFA Level III Exam):Susan Leighton, treasurer for U.S.-based Donner Life Insurance, has just joined the board of a charitable organization that has a large endowment portfolio. She is researching how the investment policy for an endowment differs from
6. James Children’s Hospital (adapted from the 1998 CFA Level III Exam):The James Children’s Hospital (JCH), based inWashington, D.C., has an operating budget of $15 million and has been operating at a budget surplus for the last two years. JCH has a $20 million endowment (JCHE) whose sole
5. Medical Research Foundation (adapted from the 1993 CFA Level III exam):TheMedical Research Foundation (MRF), based in the United States, was established to provide grants in perpetuity. MRF has just received word that the foundation will receive a $45 million cash gift three months from now. The
4. Food Processors Inc. (adapted from the 1994 CFA Level III exam):Food Processors Inc. (FPI) is a mature U.S. company with declining earnings and a weak balance sheet. Its defined-benefit pension plan (which is subject to ERISA) has total assets of $750 million. The plan is underfunded by $200
3. Gwartney International:U.S.-based Gwartney International (GI) is a financially healthy, rapidly growing import/export company with a young workforce. Information regarding GI’s definedbenefit pension plan (which is subject to the Employee Retirement Income Security Act[ERISA]) appears in
2. LightSpeed Connections (adapted from the 2000 CFA Level III Exam):Hugh Donovan is chief financial officer (CFO) of LightSpeed Connections (LSC), a rapidly growing U.S. technology company with a traditional defined-benefit pension plan. Because of LSC’s young workforce, Donovan believes the
1. Worden Technology, Inc.:Based in London, Worden Technology, Inc. is an established company with operations in North America, Japan, and several European countries. The firm has £16 billion in total assets and offers its employees a defined-benefit pension plan.Worden’s pension plan currently
13. Vincenzo Donadoni Investment Profile (adapted from 1998 CFA Level III exam)Case Facts Type of investor Individual; 56 year old male in good health Asset base 13.0 million Swiss francs (CHF)Stated return desire or investment goal Leave a trust fund of CHF 15.0 million for three children Annual
12. Foothill College Endowment Fund Case Facts Type of investor Institutional; endowment Purpose Provide annual scholarships currently totaling $39.5 million Asset base $1 billion Stated return desire 6 percent, calculated as spending rate of 4 percent plus previously expected college tuition
11. James Stephenson Investment Profile Case Facts Type of investor Individual; surgeon, 55 years of age, in good health Asset base $2 million Stated return desire or investment goal 10 percentage points above the average annual return on U.S.small-capitalization stocks Annual spending needs
10. Stephenson’s return objective and risk tolerance are most appropriately described as Return Objective Risk Tolerance A. Below average Below average B. Below average Above average C. Above average Below average D. Above average Above average
9. Stephenson’s time horizon is best characterized as A. Short-term and single-stage B. Short-term and multistage C. Long-term and single-stage D. Long-term and multistage
8. Stephenson’s tax and liquidity constraints can be best characterized as Tax Constraint Liquidity Constraint A. Significant Significant B. Significant Insignificant C. Insignificant Significant D. Insignificant Insignificant
7. Stephenson’s willingness and ability to accept risk can be best characterized as Willingness to Accept Risk Ability to Accept Risk A. Below average Below average B. Below average Above average C. Above average Below average D. Above average Above average
6. In formulating the return objective for Stephenson’s investment policy statement, the most appropriate determining factor for Coppa to focus on is A. Return desires B. Ability to take risk C. Return requirement D. Stephenson’s returns over past five years
5. The comments about investment policy statements made by Stephenson’s patients are best characterized as Hrdina Gionta A. Correct Correct B. Correct Incorrect C. Incorrect Correct D. Incorrect Incorrect
4. Characterize each of the investment objectives given below as one of the following: an absolute risk objective, a relative risk objective, an absolute return objective, or a relative return objective.A. Achieve a rate of return of 8 percent a year.B. Limit the standard deviation of portfolio
3. Stux (1994) describes a country allocation strategy across five major equity markets: the United States, the United Kingdom, Germany, France, and Japan. In this strategy, a measure of relative attractiveness among the five equity markets is used as a factor in determining the weights of the five
2. The Executive Director of the Judd University Endowment estimates that the capital markets will provide a 9 percent expected return for an endowment portfolio taking above-average risk, and a 7 percent expected return for an endowment portfolio taking average risk. The Judd Endowment provides
1. A. An individual expects to save ¤50,000 during the coming year from income from nonportfolio sources, such as salary. She will need ¤95,000 within the year tomake a down payment for a house purchase.What is her liquidity requirement for the coming year?B. Endowments are funds that are
Boeing Company (NYSE: BA) has a current stock price of $ 49.86. It also has a P/B of 3.57 and book value per share of $ 13.97. Assume that the single-stage growth model is appropriate for valuing BA. Boeing ’ s beta is 0.80, the risk-free rate is 5.00 percent, and the equity risk premium is 5.50
Shunichi Kobayashi is valuing United Parcel Service (NYSE: UPS). Kobayashi has made the following assumptions:Book value per share is estimated at $ 9.62 on December 31, 2001.EPS will be 22 percent of the beginning book value per share for the next eight years.Cash dividends paid will be 30 percent
Having completed the revised analysis, which gives TSM greater credit for its patented technology, the analyst realizes that the changes warrant an additional adjustment. Although she generally employs a 20-year time frame when implementing the multistage residual income model, she believes that
In the above analysis, the analyst uses the multistage residual income model and assumes that TSM ’ s ROE will fade toward the cost of equity capital after 2022. How would her conclusion about TSM ’ s valuation change if she believed that the persistence parameter for this company should be
Use the following inputs and the fi nite horizon form of the residual income model to compute the value of Southern Trust Bank (STB) shares as of December 31, 2001:ROE will continue at 15 percent for the next fi ve years (and 10 percent thereafter)with all earnings reinvested (no dividends
Dayton Manufactured Homes (DMH) builds prefabricated homes and mobile homes.Both favorable demographics and the likelihood of slow, steady increases in market share should enable DMH to maintain its ROE of 15 percent and growth rate of 10 percent over time. DMH has a book value of $ 30 per share
Retail fund manager Seymour Simms is considering the purchase of shares in upstart retailer Hot Topic Stores (HTS). The current book value of HTS is $ 20 per share, and its market price is $ 35. Simms expects long-term ROE to be 18 percent, long-term'growth to be 10 percent, and cost of equity to
Lendex Electronics (LE) has had a great deal of turnover of top management for several years and was not followed by analysts during this period of turmoil. Because the company ’ s performance has been improving steadily for the past three years, technology analyst Steve Kent recently reinitiated
Foodsco Incorporated (FI), a leading distributor of food products and materials to restaurants and other institutions, has a remarkably steady track record in terms of both return on equity and growth. At year-end 2000, FI had a book value of $ 30 per share.For the foreseeable future, you expect
Simonson Investment Trust International (SITI) is expected to earn $ 4.00, $ 5.00, and $ 8.00 for the next three years. SITI will pay annual dividends of $ 2.00, $ 2.50, and $ 20.50 in each of these years. The last dividend includes the liquidating payment to shareholders at the end of Year 3 when
Notable Books (NB) is a family-controlled company that dominates the retail book market. NB has book value of $ 10 per share, is expected to earn $ 2.00 forever, and pays out all of its earnings as dividends. Its required return on equity is 12.5 percent. Place a value on the stock of NB using the
Protected Steel Corporation (PSC) has a book value of $ 6 per share. PSC is expected to earn $ 0.60 per share forever and pays out all of its earnings as dividends. The required rate of return on PSC ’ s equity is 12 percent. Calculate the value of the stock using the following:A. Dividend
(Adapted from 2000 CFA Level II exam) Jim Martin is using economic value added(EVA) and market value added (MVA) to measure the performance of Sundanci. Martin uses the fi scal 2000 information below for his analysis.Adjusted net operating profi t after tax (NOPAT) is $ 100 million.Total capital is
Calculate the economic value added (EVA) or residual income, as requested, for each of the following:A. NOPAT $ 100 Beginning book value of debt $ 200 Beginning book value of equity $ 300 WACC 11 percent Calculate EVA.B. Net income € 5.00 Dividends € 1.00 Beginning book value of
In 2002, Smithson-Williams Investments (SWI) achieved an operating profi t after taxes of € 10 million on total assets of € 100 million. Half of its assets were fi nanced with debt with a pretax cost of 9 percent. Its cost of equity capital is 12 percent, and its tax rate is 40 percent. Did SWI
Because New Market Products (NMP) markets consumer staples, it is able to make use of considerable debt in its capital structure; specifi cally, 90 percent of the company ’ s total assets of $ 450,000,000 are fi nanced with debt capital. Its cost of debt is 8 percent before taxes, and its cost of
Palmetto Steel, Inc. (PSI), maintains a dividend payout ratio of 80 percent because of its limited opportunities for expansion. Its return on equity is 15 percent. The required rate of return on PSI equity is 12 percent, and its long-term growth rate is 3 percent.Compute the justifi ed P/B based on
Using the following information, estimate the intrinsic value of VIM ’ s common stock using the residual income model:VIM had total assets of $ 3,000,000, fi nanced with twice as much debt capital as equity capital.VIM ’ s pretax cost of debt is 6 percent and cost of equity capital is 10
Based on the following information, determine whether Vertically Integrated Manufacturing(VIM) earned any residual income for its shareholders in 2001:VIM had total assets of $ 3,000,000, fi nanced with twice as much debt capital as equity capital.VIM ’ s pretax cost of debt is 6 percent and cost
Kirstin Kruse, a portfolio manager, has an important client who wants to alter the composition of her equity portfolio, which is currently a diversifi ed portfolio of 60 global common stocks. The client wants a portfolio that meets the following criteria:Stocks must be in the Dow Jones Industrial
Your value-oriented investment management company recently hired a new analyst, Bob Westard, because of his expertise in the life sciences and biotechnology areas. At the company’s weekly meeting, during which each analyst proposes a stock idea for inclusion on the company’s approved list,
Data for two hypothetical companies in the pharmaceutical industry, DriveMed and MAT Technology, are given in the table below. For both companies, expenditures in fi xed capital and working capital during the previous year refl ected anticipated average expenditures over the foreseeable
Defi ne the major alternative cash fl ow concepts, and state one limitation of each.
Jorge Zaldys, CFA, is researching the relative valuation of two companies in the aerospace/defense industry, NCI Heavy Industries (NCI) and Relay Group International (RGI).He has gathered relevant information on the companies in the following table.EBITDA Comparisons(in € millions except for
General Electric (NYSE: GE) is currently selling for $38.50, with trailing 12-month earnings and dividends of $1.36 and $0.64, respectively. P/E is 28.3, P/B is 7.1, and P/S is 2.9. The return on equity is 27.0 percent, and the profi t margin on sales is 10.9 percent.The Treasury bond rate is 4.9
(Adapted from 2001 CFA Level II exam) John Jones, CFA, is head of the research department at Peninsular Research. Peninsular has a client who has inquired about the valuation method best suited for comparison of companies in an industry with the following characteristics:Principal competitors
Wilhelm Müller, CFA, has organized the selected data on four food companies that appear below (TTM stands for trailing 12 months):Hormel Foods Tyson Foods IBP Corp Smithfi eld Foods Stock price $25.70 $11.77 $23.65 $24.61 Shares out (1,000s) 138,923 220,662 108,170 103,803 Market cap ($ mil) 3,570
Avtech is a multinational distributor of semiconductor chips and related products to businesses. Its leading competitor around the world is Target Electronics. Avtech has a current market price of $10, 20 million shares outstanding, annual sales of $1 billion, and a 5 percent profi t margin. Target
Discuss three types of stocks or investment problems for which an analyst could appropriately use P/B in valuation.
Tom Smithfi eld is valuing the stock of a food processing business. He has projected earnings and dividends to four years (to t 4). Other information and estimates are Required rate of return 0.09 Average dividend payout rate for mature companies in the market 0.45 Industry average ROE 0.10
At a meeting of your company’s investment policy committee, Bill Yu presents a recommendation based on a P/E analysis. He presents the case for Connie’s Sporting Goods (CSG), a small chain of retail stores that receives almost no coverage by analysts.Yu begins by noting that CSG appeared to be
(Adapted from 2000 CFA Level II exam) Christie Johnson, CFA, has been assigned to analyze Sundanci. Johnson assumes that Sundanci’s earnings and dividends will grow at a constant rate of 13 percent. Tables 4-1 and 4-2 provide fi nancial statements and other information for Sundanci.A. Calculate a
A. Identify two signifi cant differences between Yardeni’s model of stock market valuation and the Fed model.B. Suppose an analyst uses an equity index as a comparison asset in valuing a stock. Which price multiple(s) would cause concern about the impact of potential overvaluation of the equity
You are researching the valuation of the stock of a company in the food processing industry. Suppose you intend to use the mean value of the leading P/Es for the food processing industry stocks as the benchmark value of the multiple. That mean P/E is 18.0. The leading or expected EPS for the next
May Stewart, CFA, a retail analyst, is performing a P/E-based comparison of two jewelry stores as of early 2001. She has the following data for Hallwhite Stores (HS) and Ruffany(RUF).HS is priced at $44. RUF is priced at $22.50.HS has a simple capital structure, earned $2.00 per share in 2000, and
An analyst plans to use P/E and the method of comparables as a basis for recommending one of two peer group companies in the personal digital assistant business. Data on the companies’ prices, trailing EPS, and expected growth rates in sales (fi ve-year compounded rate) are given in the table
As of February 2002, you are researching Smith International (NYSE: SII), an oil fi eld services company subject to cyclical demand for its services. You believe the 1997–2000 period reasonably captures average profi tability. SII closed at $57.98 on February 2, 2002.2001 2000 1999 1998 1997 EPS
Clay Cooperman has valued the operating assets of Johnson Extrusion at $ 720 million.The company also has short-term cash and securities with a market value of $ 60 million.The noncurrent investments have a book value of $ 30 million and a market value of$ 45 million. The company also has an
Lawrence McKibben is preparing a valuation of Tele Norte Leste Participacoes SA(NYSE: TNE), a telecom services company headquartered in Rio de Janeiro, Brazil.McKibben has decided to use a three-stage FCFE valuation model and the following estimates. The FCFE per share for the current year is $
SK Telecom Co. is a cellular telephone paging and computer communication services company in Seoul, South Korea. The company is traded on the Korea, New York, and London stock exchanges (NYSE: SKM). Sol Kim has estimated the normalized FCFE for SK Telecom to be 1,300 Korean won (per share) for the
(Adapted from CFA Level II exam, 2001) John Jones, CFA, is head of the research department of Peninsular Research. One of the companies he is researching, Mackinac Inc., is a U.S. – based manufacturing company. Mackinac has released its June 2001 fi nancial statements, shown in Tables 3-3 , 3-4 ,
(Adapted from CFA Level II exam, 2000) The management of Telluride, an international diversifi ed conglomerate based in the United States, believes that the recent strong performance of its wholly owned medical supply subsidiary, Sundanci, has gone unnoticed.To realize Sundanci ’ s full value,
Bron has earnings per share of $ 3.00 in 2002 and expects earnings per share to increase by 21 percent in 2003. Earnings per share are expected to grow at a decreasing rate for the following fi ve years, as shown in the following table. In 2008, the growth rate will be 6 percent and is expected to
An aggressive fi nancial planner who claims to have a superior method for picking undervalued stocks is courting one of your clients. The planner claims that the best way to fi nd the value of a stock is to divide EBITDA by the risk-free bond rate. The planner is urging your client to invest in
Kenneth McCoin is valuing McDonald ’ s Corporation and performing a sensitivity analysis on his valuation. He uses a single-stage FCFE growth model. The “ base case ”values for each of the parameters in the model are given in the following table, along with possible “ low ” and “ high
Watson Dunn is planning to value BHP Billiton Ltd. (NYSE: BHP) using a single-stage FCFF approach. BHP Billiton, headquartered in Melbourne, Australia, provides a variety of industrial metals and minerals. The fi nancial information Dunn has assembled for his valuation is as follows:The company has
PHB Company currently sells for $ 32.50 per share. In an attempt to determine if PHB is fairly priced, an analyst has assembled the following information:The before-tax required rates of return on PHB debt, preferred stock, and common stock are 7.0 percent, 6.8 percent, and 11.0 percent,
Do Pham is evaluating Phaneuf Accelerateur using the FCFF and FCFE valuation approaches. Pham has collected the following information (currency in euro):Phaneuf has net income of 250 million, depreciation of 90 million, capital expenditures of 170 million, and an increase in working capital of 40
Quinton Johnston is evaluating Taiwan Semiconductor Manufacturing Co., Ltd., (NYSE:TSM) headquartered in Hsinchu, Taiwan. In 2001, when Johnston is performing his analysis, the company — and indeed, the whole industry — is unprofi table. Furthermore, TSM pays no dividends on its common shares.
Proust Company has FCFF of $ 1.7 billion and FCFE of $ 1.3 billion. Proust ’ s WACC is 11 percent and its required rate of return for equity is 13 percent. FCFF is expected to grow forever at 7 percent and FCFE is expected to grow forever at 7.5 percent. Proust has debt outstanding of $ 15
The term “ free cash fl ow ” is frequently applied to cash fl ows that differ from the defi nition for FCFF that should be used to value a fi rm. Two such defi nitions of “ free cash fl ow ”are given below. Compare the defi nitions given for FCF to FCFF.A. FCF Net income Depreciation
For LaForge Systems, whose fi nancial statements are given in Problem 2, show the adjustments from the current levels of CFO (which is 427), EBIT (605), and EBITDA(785) to fi nd A. FCFF, and B. FCFE.
LaForge Systems, Inc., has net income of $ 285 million for the year 2003. Using information from the company ’ s fi nancial statements below, show the adjustments to net income that would be required to fi nd A. FCFF, and B. FCFE.C. In addition, show the adjustments to FCFF that would result in
Indicate the effect on this period ’ s FCFF and FCFE of a change in each of the items listed below. Assume a $ 100 increase in each case and a 40 percent tax rate.A. Net income B. Cash operating expenses C. Depreciation D. Interest expense E. EBIT F. Accounts receivable G. Accounts payable H.
(Adapted from 1998 CFA Level II exam) Janet Ludlow ’ s company requires all its analysts to use a two-stage DDM and the CAPM to value stocks. Using these models, Ludlow has valued QuickBrush Company at $ 63 per share. She now must value SmileWhite Corporation.A. Calculate the required rate of
(Adapted from 2001 CFA Level II exam) Peninsular Research is initiating coverage of a mature manufacturing industry. John Jones, CFA, head of the research department, gathers the information given in Table 2-5 to help in his analysis.TABLE 2-6 Economic and Market Data Fundamental Factors Country A
(Adapted from 2000 CFA Level II exam) The management of Telluride, an international diversifi ed conglomerate based in the United States, believes that the recent strong performance of its wholly owned medical supply subsidiary, Sundanci, has gone unnoticed. In order to realize Sundanci ’ s full
(Adapted from 1999 CFA Level II exam) Scott Kelly is reviewing MasterToy ’ s fi nancial statements in order to estimate its sustainable growth rate. Using the information presented in Table 2-2 , A. i. Identify the three components of the DuPont formula.ii. Calculate the ROE for 1999 using the
(Adapted from 1995 CFA Level II exam) Your supervisor has asked you to evaluate the relative attractiveness of the stocks of two very similar chemical companies: Litchfi eld Chemical Corp. (LCC) and Aminochem Company (AOC). AOC and LCC have June 30 fi scal year ends. You have compiled the data in
Hanson PLC (LSE: HNS) is selling for GBP 472. Hansen has a beta of 0.83 against the FTSE 100 index, and the current dividend is GBP 13.80. The risk-free rate of return is 4.66 percent, and the equity risk premium is 4.92 percent. An analyst covering this stock expects the Hanson dividend to grow
EB Systems is selling for $ 11.40 and is expected to pay a $ 0.40 dividend next year.The dividend is expected to grow at 15 percent for the following four years, and then at 7 percent annually after Year 5. If purchased at its current price, what is the expected rate of return on EB Systems? Assume
FPR is expected to pay a $ 0.60 dividend next year. The dividend is expected to grow at a 50 percent annual rate for Years 2 and 3, at 20 percent annually for Years 4 and 5, and at 5 percent annually for Year 6 and thereafter. If the required rate of return is 12 percent, what is the value per
The CFO of B-to-C Inc., a retailer of miscellaneous consumer products, recently announced the objective of paying its fi rst (annual) cash dividend of $ 0.50 in four years.Thereafter, the dividend is expected to increase by 7 percent per year for the foreseeable future. The company ’ s required
Dole Food (NYSE: DOL) has a current dividend of $ 0.40, which is expected to grow at 7 percent forever. Felipe Rodriguez has estimated the required rate of return for Dole using three methods. The methods and the estimates are as follows:Bond yield plus risk premium method r 9.6%CAPM method r
R.A. Nixon put out a “ strong buy ” on DuPoTex (DPT). This company has a current stock price of $ 88.00 per share. The company has sales of $ 210 million, net income of$ 3 million, and 300 million outstanding shares. DPT is not paying a dividend. Dorothy Josephson has argued with Nixon that DPT
NiSource Preferred B (NYSE: NI-B) is a fi xed-rate perpetual preferred stock paying a$ 3.88 annual dividend. If the required rate of return is 7.88 percent, what is the value of one share? If the price of this preferred stock were $ 46.00, what would be the yield?
Vicente Garcia is a buy-side analyst for a large pension fund. He frequently uses dividend discount models such as the Gordon growth model for the consumer noncyclical stocks that he covers. The current dividend for Procter & Gamble Co. (NYSE: PG) is $ 1.46, and the dividend eight years ago was $
For fi ve utility stocks, the table below provides the expected dividend for next year, the current market price, the expected dividend growth rate, and the beta. The risk-free rate is currently 5.3 percent, and the market risk premium is 6.0 percent.Stock Dividend( D 1 )Price( P 0 )Dividend Growth

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Equity Asset Valuation Workbook 1st Edition John D. Stowe, Thomas R. Robinson, Jerald Pinto, Dennis W. McLeavey - Solutions

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