Calculate emc estimated value of operations

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1. EMC Corporation has never paid a dividend. Its current free cash flow of $420,000 is expected to grow at a constant rate of 5%. The weighted average cost of capital is WACC = 12.5%. Calculate EMC's estimated value of operations. Round your answer to the nearest dollar.

2. The beta for IBM is 1.49. The risk-free rate is 3.4% and the market risk premium is 8%. What is the expected return on IBM's stock? Round your answer to four decimal places.

3. The market risk premium is 5%. The beta of Delta Airlines is 0.7 and Delta's required return on equity is 11. Find the risk-free rate. Round your answer to four decimal places.

Reference no: EM132029717

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