All data is as of the end of the most recent period except for
book equity, which is beginning of most recent period.
Beginning period of book equity
$25,000
Net Income
$2,500
Depreciation and amortization
$1,010
Fixed capital investments
$1,500
Working capital investment
$875
Internet expense
$300
Tax rate
40%
Net borrowing
$250
Dividends
$1,000
Common share outstanding
1,000
Risk free rate
3.25%
Market risk premium
6.00%
Beta
1.5
Expected growth in FCFE (constant)
5.00%
a. Value the stock 9price...