Question

14a

Category	Prior Year	Current Year
Accounts payable	3,145.00	5,931.00
Accounts receivable	6,888.00	9,077.00
Accruals	5,620.00	6,076.00
Additional paid in capital	20,105.00	13,324.00
Cash	???	???
Common Stock	2,850	2,850
COGS	22,159.00	18,327.00
Current portion long-term debt	500	500
Depreciation expense	975.00	952.00
Interest expense	1,289.00	1,136.00
Inventories	3,088.00	6,655.00
Long-term debt	16,844.00	22,324.00
Net fixed assets	75,757.00	74,071.00
Notes payable	4,001.00	6,585.00
Operating expenses (excl. depr.)	19,950	20,000
Retained earnings	35,741.00	34,774.00
Sales	46,360	45,665.00
Taxes	350	920

What is the firm's total change in cash from the prior year to the current year?

19. A stock just paid a dividend of $1.51. The dividend is expected to grow at 29.58% for three years and then grow at 3.06% thereafter. The required return on the stock is 11.74%. What is the value of the stock?

Answer format: Currency: Round to: 2 decimal places.

#2 A stock just paid a dividend of $1.28. The dividend is expected to grow at 26.56% for five years and then grow at 3.27% thereafter. The required return on the stock is 13.89%. What is the value of the stock?Answer format: Currency: Round to: 2 decimal places.

#3 A stock just paid a dividend of $2.78. The dividend is expected to grow at 24.80% for two years and then grow at 3.32% thereafter. The required return on the stock is 14.34%. What is the value of the stock?

Answer format: Currency: Round to: 2 decimal places.

#4 The risk-free rate is 2.89% and the market risk premium is 4.97%. A stock with a β of 1.09 will have an expected return of ____%.

Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))

#5 The risk-free rate is 1.46% and the expected return on the market 8.47%. A stock with a β of 1.29 will have an expected return of ____%.

Answer 1

19.
=1.51*(1.2958/1.1174)+1.51*(1.2958/1.1174)^2+1.51*(1.2958/1.1174)^3+1.51*(1.2958/1.1174)^3*1.0306/(11.74%-3.06%)=34.096471072187

2.
=1.28*(1.2656/1.1389)+1.28*(1.2656/1.1389)^2+1.28*(1.2656/1.1389)^3+1.28*(1.2656/1.1389)^4+1.28*(1.2656/1.1389)^5+1.28*(1.2656/1.1389)^5*1.0327/(13.89%-3.27%)=29.9722325085028

3.
=2.78*(1.248/1.1434)+2.78*(1.248/1.1434)^2+2.78*(1.248/1.1434)^2*1.0332/(14.34%-3.32%)=37.3975649406822

4.
=2.89%+1.09*4.97%=8.3073%

5.
=1.46%+1.29*(8.47%-1.46%)=10.5029%