can I please have answer with solutions? thank you!
As per rules I am answering the first 4 subparts of the question
29: True
(Since creditors are outsiders they are paid before the owners)
30: Stock price = Annual dividend/(k-g)
= 1.5/(7%-1%)
= $25
31: PV= C0+ CF1/(1+r)^1 + CF2/(1+r)^2 …………CFn/(1+r)^n
= 1.5/1.08^1+1.95/1.08^2+(2.2+54.26)/1.08^3
= 47.88
32: Annual dividend = Stock price*Required rate
= 45.6*6%
= $2.74
can I please have answer with solutions? thank you! 29.) True or False...are claims of creditors...
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