Setting aside all other valuation analysis, what is the implied falr price of XYZ Corp.$\text{'}$s stock if its earninge per share is $$1\mathrm{.}50$ and the average price$/$earnings ratio of its peer group is $20x.?$

$$20$

$$30$

$$15$

$$40$

QUESTION $2$

Your expected return on XYZ Corp. is $15\%.$ If you forecast XYZ$\text{'}$s stock to trade at $$50$ per share in one year and, during that year, you expect the company will pay a $$4$ dividend, what would be a fair price to payf or the stock $($round to the nearest $$1)?$

$$50$

$$54$

$$41$

$$43$

QUESTION $3$

Using a constant$-$growth$-$rate dividend discount model, all of the following would support a higher valuation except $($only choose the exception$)$:

A larger base$-$year dividend

A higher market capitalization rate $(k)$

A lower market capitalization rate $(k)$

A higher expected dividend growth rate