Question: Answer the following problem below and shown in picture problem is separated each of the picture answer and show the formula of each 7-11. Since




Answer the following problem below and shown in picture problem is separated each of the picture answer and show the formula of each





7-11. Since it has been in business, FoolsGoId Jewelry has never paid a dividend. The company will not pay a dividend at the end of this year. However. two years from todayat the end of Year 2FoolsGoId expects t: pay a dividend equal to $0.50 per share. which it plans to increase by 6 percent each year thereafter for the remainder of the company's life. If investors require a 14 percent rate of return to purchase its common stock, what should be the market value of FoolsGold's stock today? _______ __ ____ "'|"'J _ _______ 7-17. Georgetown Motorcars' (GM) common stock normally sells for 19 times its earnings; that is, its PIE ratio equals 19. If GM's earnings per share are $3.?0, what should be its stock price under normal circumstances? 7-7. Alpine Ski Resort has grown at a constant rate, which equals 4 percent, for as long as it has been in business. This growth rate is expected to continue long into the future. A couple of days ago, Alpine paid common stockholders a dividend equal to $3 per share. If investors require a 10 percent rate of return to purchase Alpine's common stock, what is the market value of its common stock? 7-3. Express Surgery Center's (ESC) preferred stock, which has a par value equal to $110 per share, pays an annual dividend equal to 9 percent of the par value. If investors require a 15 percent return to purchase ESC's preferred stock, what is the stock's market value? 7-19. RJS generated $65,000 net income this year. The firm's financial statements also show that its interest expense was $40,000, its marginal tax rate was 35 percent, and its invested capital was $800,000. If its average cost of funds is 12 percent, what was RJS's economic value added (EVA) this year
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