Given the following estimated financial results, value the stock of FishnChips, InA., usin

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.

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