Please answer A,B,C,D showing all workings

Financial Analysis (16 Marks) Analysts generally assume most firms will revert to what they call a 'steady state" eventually. They assume powerful economic forces prevent these firms from sustaining above/below average levels of profitability and growth forever. A firm in steady state exhibits a stable return on equity. In addition, the book value of that firm's equity grows at a constant rate indefinitely, REQUIRED: Answer all FOUR parts to this question (A.B.C.D) worth 4 marks each. You should assume the firm is in steady state in each of the cases outline below. Show all of your working out. Part A (4 marks). Delphi Led has a current market price of $15 per share and its book value of equity is currently 55 per share. Analysts forecast Delphi Ltd's book value of equity will grow by 10% per year indefinitely and the cost of equity is 15% per annum. What is the Delphi Ltd's expected long-term average ROE Financial Analysis Part B (4 Marks) What will be Delphi Ltd's market price per share if: - The book value of its equity continues to grow at 10% per annum indefinitely The book value of equity remains at 55 per share: The cost of equity is 15% per annum; and, - The expected long-term average annual ROE is 20%. Financial Analysis Part C (4 marks) Analysts reassess Delphi Ltd's future performance as follows: The growth in book value of equity increases to 12% per annum; but, The expected long-term average annual ROE is only 15% per cent. What is the revised market-to-book multiple? Explain why this would be the case. Financial Analysis Part D (4 Marks) Normal Ltd's shares have a market price of $20 and a book value of $12 respectively. Normal Ltd has an expected growth in the book value of its equity equal to 5% per annum indefinitely. What is Normal Ltd's expected steady state ROE if it has a cost of equity capital equal to 15% per annum? Financial Analysis (16 Marks) Analysts generally assume most firms will revert to what they call a 'steady state" eventually. They assume powerful economic forces prevent these firms from sustaining above/below average levels of profitability and growth forever. A firm in steady state exhibits a stable return on equity. In addition, the book value of that firm's equity grows at a constant rate indefinitely, REQUIRED: Answer all FOUR parts to this question (A.B.C.D) worth 4 marks each. You should assume the firm is in steady state in each of the cases outline below. Show all of your working out. Part A (4 marks). Delphi Led has a current market price of $15 per share and its book value of equity is currently 55 per share. Analysts forecast Delphi Ltd's book value of equity will grow by 10% per year indefinitely and the cost of equity is 15% per annum. What is the Delphi Ltd's expected long-term average ROE Financial Analysis Part B (4 Marks) What will be Delphi Ltd's market price per share if: - The book value of its equity continues to grow at 10% per annum indefinitely The book value of equity remains at 55 per share: The cost of equity is 15% per annum; and, - The expected long-term average annual ROE is 20%. Financial Analysis Part C (4 marks) Analysts reassess Delphi Ltd's future performance as follows: The growth in book value of equity increases to 12% per annum; but, The expected long-term average annual ROE is only 15% per cent. What is the revised market-to-book multiple? Explain why this would be the case. Financial Analysis Part D (4 Marks) Normal Ltd's shares have a market price of $20 and a book value of $12 respectively. Normal Ltd has an expected growth in the book value of its equity equal to 5% per annum indefinitely. What is Normal Ltd's expected steady state ROE if it has a cost of equity capital equal to 15% per annum