Select 2 companies in the same industry. Use debt to capital ratio, Debt to equity, and interest coverage ratios and concepts from Risk Analysis to determine which company is riskier. Show your calculations and discuss your analysis.
Your company has a required rate of return 7%. The company has completed a new project that is expected to grow dividends at a rate of 50% the first year and 25% the following year, after which growth should be at a constant rate of 6%. The last dividend paid was $1.00. What is the value per share of your firm’s stock?