Beagle Beauties engages in the development, manufacture, and…
Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed to make your dog look glamorous. Below you will find selected information necessary to compute some valuation estimates for the firm. Assume the values provided are from year-end 2019. Also assume that the firm’s equity beta is 1.60, the risk-free rate is 2.25 percent, and the market risk premium is 7 percent. Dividends per share $ 2.10 Return on equity 9.50 % Book value per share $ 17.50 Earnings Cash Flow Sales 2019 value per share $ 5.00 $ 6.60 $ 25.65 Average price multiple 13.10 9.45 2.39 Forecasted growth rate 13.51 % 11.38 % 7.21 % What is the sustainable growth rate for Beagle Beauties? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Do not include the % sign) exam spreadsheet (8).xlsx
Read DetailsSouthern Fields has an inventory of 838,000 pounds of sugar….
Southern Fields has an inventory of 838,000 pounds of sugar. The firm placed a partial hedge on this inventory by selling 6 futures contracts at 9.56. The futures contracts are based on 112,000 pounds and are quoted in cents per pound. At the time the firm sold the sugar, the spot rate was 9.63. How much profit did the firm lose because of the hedge? exam spreadsheet (8).xlsx
Read DetailsNewcomer Mills is a relatively new firm which will retain al…
Newcomer Mills is a relatively new firm which will retain all of its earnings for the next four years. Four years from now, the firm expects to pay its first dividend of $.25 a share. After that, it intends to increase the dividend by 4 percent annually. What is the value of this stock today at a discount rate of 12 percent? exam spreadsheet (8).xlsx
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