PLEASE SHOW WORK! I WILL GIVE IT A THUMBS UP AND COMMENT!

Riskfree rate = 0.016 Market rate = 0.078

t is the current year. In general, the EPS and dividend for t will be given.

1. Open Text has a beta of 0.95. What is its required return?

2. New York Community Bank has a beta of 0.95 and a fixed dividend of $0.68. What is its intrinsic value? If its currently trading at about $9.86 a share, is it over or under valued?

3. The Carlisle Companies has a beta of 1.00, an expected dividend of $2.10 next year, and an 3% growth rate. If its trading at $123.68, is it over or under valued?

4. Using the information below and the CD&E model, forecast Carlisles cash flows for t+1, t+2, and t+3 to determine whether Carlisle is over or under valued if its trading at $123.68.

	t	t-1	t-2	t-3
EPS	$9.05
DPO		0.23	0.22	0.26
ROE		0.17
Beta	1.95
P/E		18.7	18.7	17.2

5. Axis Capitals three most recent P/Es are 21.6, 28.6, and 12.5. Its current EPS is expected to be $5.50. If its current price is $37.54, is it over or under valued?

6. Use the information below and the Two-stage Growth Model to find Axis Capitals intrinsic value. Forecast its cash flows from t+1 to t+3. If its current price is $37.54, is it over or under valued?

	t	t+1	t+2	t+3	t+4
Beta	0.80
ROE		0.09	0.08	0.08	0.08
DPO		0.37	0.34	0.34	0.34
Div	$1.64