Core Inc. currently pays a dividend of $1.50, which is expected to grow indefinitely at...

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Accounting

  • Core Inc. currently pays a dividend of $1.50, which is expected to grow indefinitely at 5%. If the current value of Cores shares based on the constant-growth dividend discount model is $52 what is the required rate of return?

  • The Falcon Group has reported a free cash flow to the firm (FCFF) of $175 million. What is the market value of equity if the free cash flow from equity is projected to grow at 3% indefinitely and the required rate of return is 12%? Smith Group has an interest expense of $20 million and its net debt increased by $1.75 million. The tax rate for Falcon Group is 30%.

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