Question: there are some missing part. You should be more careful. 5 Yato Paragua 3- E(RI) = R +B (R... - R.) E(R) = K =
5 Yato Paragua 3- E(RI) = R +B (R... - R.) E(R) = K = 0.04 +0.8 (0.24-0.04) = 0.2 (20%) P=0/(1k)+D. (1+g.)/(1+k)? 5/(1+0.2) + 5(1+0.05)/(1+0.2P = 4.16 +5.25/1.44 = 4.16/3.64 = 1.14 After the year 2 the dividends will grow at 12% up to infinity so I can estimate this growth using D/(k-g) The dividend in third year will be 5(1+0.05)(1+0.12) -5.88 --- Now we must find the present value of 73.5 since it will be received in the future. We need to discounted by 5/(1+k) So it is: 73.5 / 1.44= 64.4 as the present value of 73.5 Then adding up 1.14 with 64.4 leads to 65.6 which is the fundamental price of that stock 4- a) Quick Ratio: It is show that to help us understand whether current assets out of stock (which can be difficult to cash out at certain times) so that current
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