Part 1A.)CAPM to calc Expected RORRisk Free Rate 3.50% RfMarket Return 12.00% RmBeta 0.85r=36.98% (this is my answer)B.) Estimated constant growth ratePV=($1.20) FV=$1.55 n=6 Rate= .0436 (this is my answer)C.) Estimate the value of stock using CGM (I have no answer here)D.) Calculate the est value or price todayE.) If the actual market value was below your est value and you were highly confident in your assumptions, what action might you take?Part 2-Financial Statements for above problemsBSCurrent AssetsCash $104A/R $455Inv $553Total $1112Fixed AssetsNet Plant & Eq $1644Total Assets $2756Current LiabAP $232NP $196Total $428LTD $408OE $600CS $600Ret Earn $1320Total CE $1920Total Liab & OE $2756Income Stmnt(millions)Sales $1509COGS $750Dep $65EBIT $694Interest Exp $70Tax Inc $624Taxes $212NI $412Other InfoCash Flow $477 million# XXXXX Shares 76.8 millionCurrent Share Price $78.62 per share
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