Given the following estimated financial results, value the stock of FishnChips, In
A.
, using the infinite period dividend discount model (DDM). · Sales of $1,000,000. · Earnings of $150,000. · Total assets of $800,000. · Equity of $400,000. · Dividend payout ratio of 60.0%. · Average shares outstanding of 75,000. · Real risk free interest rate of 4.0%. · Expected inflation rate of 3.0%. · Expected market return of 13.0%. · Stock Beta at 2.1. The per share value of FishnChips stock is approximately: (Note: Carry calculations out to at least 3 decimal places.)
B.
Unable to calculate stock value because ke D.$17.91. E.$26.86.