Valuation – Constant Dividend Growth model (DGM) Exhibit 10…

Valuation – Constant Dividend Growth model (DGM) Exhibit 10 provides the stock price and dividend paid (annual) by PCP on March 31, 2015. What is the estimate of the implied cost of equity based on the average of the high and low stock prices and the annual dividends reported on March 31, 2015? Use the constant dividend growth model and assume a dividend growth rate of 4.5% per year.

Consider the following elements of Buffett’s investment phil…

Consider the following elements of Buffett’s investment philosophy (IP) described in the case on pages 3 through 7. Which of these element(s) is (are) consistent with modern finance principles based on the finance courses you have taken? a) Economic reality, not accounting reality(IP 1)b) The Cost of lost opportunity (IP 2)c) Embrace the time value of money (IP 3)d) Measure performance by gain in intrinsic value, not accounting profit (IP 4)