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Use the Following Information to Answer Problems

Question 43

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Use the following information to answer Problems
Use the following information to answer Problems    -Answer the following questions based on the financial data given above: I) Calculate ROE for the year 2000 using the 3 stage DuPont formula. ii. Calculate the sustainable rate of growth. iii. Calculate the current value of a share of ABC stock using a two-stage dividend discount model. iv. Calculate the amount of FCFE per share for the year 2000. V) Briefly explain how to calculate the current value of a share of ABC stock using the two-stage FCFE model.  vi. Calculate the P/E ratio using the long run growth rate of 13%. vii. Describe one limitation of the two-stage DDM model that is addressed by using the two-stage FCFE model. viii. Describe one limitation of the two-stage DDM model that is not addressed by using the two-stage FCFE model.
-Answer the following questions based on the financial data given above:
I) Calculate ROE for the year 2000 using the 3 stage DuPont formula.
ii. Calculate the sustainable rate of growth.
iii. Calculate the current value of a share of ABC stock using a two-stage dividend discount model.
iv. Calculate the amount of FCFE per share for the year 2000.
V) Briefly explain how to calculate the current value of a share of ABC stock using the two-stage FCFE model.
vi. Calculate the P/E ratio using the long run growth rate of 13%.
vii. Describe one limitation of the two-stage DDM model that is addressed by using the two-stage FCFE model.
viii. Describe one limitation of the two-stage DDM model that is not addressed by using the two-stage FCFE model.

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8.i. Net profit margin (PM) = Net income...

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