On January 1, 1991, you are considering the purchase of ABC Company's common share. You have collected the following information on ABC Company:1.Book value for common share on January 1, 1991 is $13per share.2.Predicted net income for 1991 is $2per share and net income is expected to increase by 10% every year through 1995. 3.ABC is expected to pay $0.5dividends per year from 1991 to 1995.4.After 1995, abnormal earnings will grow by 5% per year.5.ABC's beta is1.2. The risk-free rate of return is6.6% and the market risk premium is 7%. You should use the CAPM model to estimate the equity cost of capital for ABC Company. Required:Using the abnormal earnings formula, compute the estimated equity value per share of ABC Company onJanuary 1, 1991.Your answers must show the steps of computations for any credits. Problem 2 (2 points)Use the stock return data of Walmartand Cisco to estimate their betas. The monthly return data is available in Blackboard.

Label each scenario with the term that best describes it. use the midpoint method when applicable. marcel duchamp was a famous artist prior to his death, and was known for his dada artwork, including works such as "soft toilet". all of his original sculptures and paintings go on sale. paul owns a tim horton's, a famous donut and coffee franchise. he is willing to sell as many maple glazed donuts as customers want at a price of $1.00 each, but he refuses to sell any donuts for any price lower than $1.00 . the price of facial tissues rises from $2.85 per box to $3.15 . as a result, p& g increases production from 15 million boxes to 25 million boxes of facial tissue. with the school semester starting for both high school and college, papermate chooses to increase production of pens from 38 million to 42 million after global prices of writing instruments increase from $1.90 a package to $2.10 a package. bright ideas increases its production of lightbulbs by 15% after a 400% increase in the price of fluorescent bulbs.labels: elastic supply; perfectly inelastic supply; perfectly elastic supply; inelastic supply; unit-elastic supply.

If a bond is issued at a premium the effective interest rate is most likely

Use this image to answer the following question. when the economy is operating at point b, the us congress is most likely to follow