Question: Back to Part A again. Make two changes in the model: 1). Let debt be the plug and keep cash constant at its year-O level.

Back to Part A again. Make two changes in the model:

Back to Part A again. Make two changes in the model: 1). Let debt be the plug and keep cash constant at its year-O level. 2). Suppose that the rm has 1,000 shares and that it decides to pay, in year 1, a dividend per share of $0.15. In addition, suppose that it wants this dividend per share to growth in subsequent years by 12% per year. Incorporate these changes into the pro forma model and solve this model to get the market value of equity per share. (5 points)

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