# What is the market capitalization rate for risk

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64. What is the market capitalization rate for Risk Metrics?A.13.6%B.13.9%C.15.6%D.16.9%E.none of the abovek = 3.50 / 90 + .10; k = 13.9%
Difficulty: Moderate18-35
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Chapter 11 / Exercise 19
Income Tax Fundamentals 2020
Altus-Buller/Whittenburg
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Chapter 18 - Equity Valuation Models65. What is the approximate beta of Risk Metrics's stock?
Difficulty: Difficult66. The market capitalization rate on the stock of Flexsteel Company is 12%. The expectedROE is 13% and the expected EPS are \$3.60. If the firm's plowback ratio is 50%, the P/Eratio will be _________.
Difficulty: Difficult18-36
Chapter 18 - Equity Valuation Models67. The market capitalization rate on the stock of Flexsteel Company is 12%. The expectedROE is 13% and the expected EPS are \$3.60. If the firm's plowback ratio is 75%, the P/Eratio will be ________.
Difficulty: Difficult18-37
Chapter 18 - Equity Valuation Models68. The market capitalization rate on the stock of Fast Growing Company is 20%. Theexpected ROE is 22% and the expected EPS are \$6.10. If the firm's plowback ratio is 90%,the P/E ratio will be ________.A.7.69B.8.33C.9.09D.11.11E.50g = 22% X 0.90 = 19.8%; .1/(.20 - .198) = 50
Difficulty: Difficult69. J.C. Penney Company is expected to pay a dividend in year 1 of \$1.65, a dividend in year2 of \$1.97, and a dividend in year 3 of \$2.54. After year 3, dividends are expected to grow atthe rate of 8% per year. An appropriate required return for the stock is 11%. The stock shouldbe worth _______ today.
Difficulty: Difficult18-38
Chapter 18 - Equity Valuation Models70. Exercise Bicycle Company is expected to pay a dividend in year 1 of \$1.20, a dividend inyear 2 of \$1.50, and a dividend in year 3 of \$2.00. After year 3, dividends are expected togrow at the rate of 10% per year. An appropriate required return for the stock is 14%. Thestock should be worth _______ today.
Difficulty: Difficult18-39
Chapter 18 - Equity Valuation Models71. Antiquated Products Corporation produces goods that are very mature in their product lifecycles. Antiquated Products Corporation is expected to pay a dividend in year 1 of \$1.00, adividend of \$0.90 in year 2, and a dividend of \$0.85 in year 3. After year 3, dividends areexpected to decline at a rate of 2% per year. An appropriate required rate of return for thestock is 8%. The stock should be worth ______.
Difficulty: Difficult18-40
Chapter 18 - Equity Valuation Models

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Term
Fall
Professor
UP
Tags
Dividend yield, P E ratio, Equity Valuation Models
##### We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
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Chapter 11 / Exercise 19
Income Tax Fundamentals 2020
Altus-Buller/Whittenburg
Expert Verified