Question $7$

$\frac{0}{1}$

DEF Inc. is expected to pay dividends of $$1,$$$1\mathrm{.}50,$ and $$2$ during the next three years. After that, dividends are expected to grow at $5\%$ per year. If the market demands a return of $11\%,$ what should be the price of DEF in three years?

$($Do not round intermediate numbers. Round final answer to the nearest cent and do not enter a dollar sign$)$

$29\mathrm{.}20$

Question $8$

$0/1$

Our company projects the following FCFs for the next $3$ years: $$5,000,000$;$$5,500,000$;$$6,000,000.$ Future growth is expected to slow to $5\%$ beyond year $3.$ What is the terminal value of the company in year $3$ if the WACC is $8\%?$

$($Round to the nearest cent and do not enter a dollar sign$)$

$180812757\mathrm{.}20$