And1) O represents the present value of the future dividend

K donates the appropriate risk-adjusted discount rate

T donates the dividend to paid in t times year

V(0)=(D(1)/(1+k))+ (D(1)/(1+k)^1)+(D(1)/(1+k)^2)+ (D(1)/(1+k)^3)……..+ (D(T)/(1+k)^T)

=(10/(1.1)^1)+ (20/(1.1)^2)+ (30/(1.1)^3)
Value of stock 48.16 per share
2) The Gordon Growth Model values a company's stock using an assumption of
constant growth in payments a company makes to its common equity shareholders. The
three key inputs in the model are dividends per share (DPS), the growth rate in
dividends per share, and the required rate of return (RoR).
3) The beta is the number that tells the investor how that stock acts compared to
all other stocks, or at least in comparison to the stocks that comprise a relevant
index.

Beta measures a stock's volatility, the degree to which its price fluctuates in
relation to the overall stock market. In other words, it gives a sense of the stock's
risk compared to that of the greater market's. Beta is used also to compare a
stock's market risk to that of other stocks.

4) Increase

Ans2)
2018
25350000 Hist
Years 2019 2020 2021 20
10% 10
Sales 50000 55000 60500 653
Less
Operating Cost 40000 44000 48400 490
Depreciation 2500 3080 3872 34
A 42500 47080 52272 524
EBIT 7500 7920 8228 129
EBIT(1-T) 4875 5148 5348 83

Total Operating Capital 30000 32400 34992 37441.

Khanzada Owais Qarni-1850115

 C Net new OP Capital 4700 2400 2592 24

B-C Free Cash Flow 175 2748 2756 59

PV of free Cash flow Nil 2271.1 2070.8 4056

FCF
FCF 2025 2024(1+G) 677.45
TV 2024 FCF 2025/(rs or WACC-g) 135449
PV of the 2013

Khanzada Owais Qarni-1850115