E debt plus equity is v0 c1 1018500 14550000 k

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Unformatted text preview: ty Valuation The value of the firm (i.e., debt plus equity) is: V0 = C1 $1,018,500 = = $14,550,000 k − g 0.12 − 0.05 . 21. a. Price = 20.62 b. Price = 18.95 c. Price = 20.07 Use this spreadsheet for all answers Inputs beta 1.05 mkt_prem 0.085 rf 0.035 k_equity 0.12425 plowback 0.7 ROE 0.11 term_gwth 0.077 Year Dividend Div growth 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.90 0.98 1.07 1.15 1.25 1.35 1.47 1.59 1.72 1.86 2.01 2.16 2.34...
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