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14. FedEx expects to pay a dividend next year of $5.60 /share, which would be a...

14.

FedEx expects to pay a dividend next year of $5.60 /share, which would be a growth rate of 10%. The required return is 20%. The value of a share of FedEx’s common stock is _________.

15.

The risk-free rate is 6%, the market return is 12% annually. Hasbro has a beta of 1.3 expects to offer a constant dividend of $5.20/share. Hasbro is being sued for copying other products and the beta of the stock goes up to 1.6. The price of the stock now is:

16.

Salesforce has both debt and equity. The debt portion is 45%. They may issue new bonds at a YTM of 10% and the tax rate is 30%. If the firm's WACC is 12% find the firm’s cost of equity.

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