What is the company equity multiplier

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1. PeteCorp's stock has a Beta of 1.38. Its dividend is expected to be $2.46 next year, and will grow by 5% per year after that indefinitely. Assume the risk-free rate is 3%, and the Market Risk Premium is 9%. The stock price would currently be estimated to be $________.

2. Bass Unlimited has a debt ratio of 0.23. What is the company’s equity multiplier? Answer Format: Number: Round to: 2 decimal places.

3. You expect Pirate Vision to have a ROE of 14%, a beta of 1.25, an expected earnings per share (E1) of $4.75, and a stable dividend payout ratio of 45%. The expected market risk premium is 9%, and the 10-year Treasury note yield is 2.05%. Calculate the value estimate of Pirate Vision stock (V0) according to the constant growth DDM?

Reference no: EM132050211

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