Question: Need help withthis two question Problem 7-5 Nonconstant Growth Valuation A company currently pays a dividend of $1.75 per share (D0 = $1.75). It is

Need help withthis two question

Problem 7-5 Nonconstant Growth Valuation A company currently pays a dividend of $1.75 per share (D0 = $1.75). It is estimated that the company's dividend will grow at a rate of 22% per year for the next 2 years, and then at a constant rate of 5% thereafter. The company's stock has a beta of 1.9, the risk-free rate is 7.5%, and the market risk premium is 4%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent.

Problem 7-18 Free Cash Flow Valuation

Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 3 years, after which FCF is expected to grow at a constant 8% rate. Dozier's weighted average cost of capital is WACC = 15%.

Year
1 2 3
Free cash flow ($ millions) -$20 $30 $40

What is Dozier's horizon value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3.) Round your answer to two decimal places. $ million

What is the current value of operations for Dozier? Do not round intermediate calculations. Round your answer to two decimal places. $ million

Suppose Dozier has $10 million in marketable securities, $100 million in debt, and 10 million shares of stock. What is the intrinsic price per share? Do not round intermediate calculations. Round your answer to the nearest cent. $

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