EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 12, Problem 3QTD
Summary Introduction

To discuss: The reason why company long period debt high risky than a government long period debt.

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For EnPro, Please find the following values using the pdf (value line) provided . Please no excle.    When finding R, use the formula: Risk Free Rate + Beta * (Market Rate – Risk Free Rate)  The Risk Free Rate will always be 0.016 and the Market Rate will always be 0.136 for this problem. (For R, I got 17.2%, If I'm wrong can you please explain how) On Value Line: DPO = All Div'ds to Net Profit On Value Line: ROE = Return on Shr. Equity On Value Line: P/E = Avg Ann'l P/E ratio* The first 4 results should be rated to the year 2025 (r, Average DPO, Growth rate, Average P/E)   r= _ Average DPO= _ Growth rate= _ Average P/E= _ 2026 EPS= _ 2027 EPS= _ 2028 EPS= _ 2026 dividend= _ 2027 dividend= _ 2028 dividend= _ 2028 price= _ 2028 total cash flow Intrinsic value= _
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