Use the following forecasted financials: (Certain cells were left intentionally blank by asker) You may need to use the CAPM model. Assume beta equals 1.09, the risk-free rate is 1.62%, and the market risk premium is 4.72%. d) Calculate the terminal value and the present value of the terminal value. Assume a long-term growth rate of 3%. e) Calculate Sherwin Williams value per share. The company has 263.3 million shares outstanding. Shareholders' EquityShareholders' EquityYearBeginningNet IncomeDividendsEnding20213,610.82,231.220222,644.73,671.820233,671.82,991.12,954.13,708.720243,708.73,341.03,299.83,749.920253,749.93,731.93,685.83,796.020263,796.03,918.53,870.13,844.420273,844.44,114.44,063.63,895.220283,895.24,320.24,266.83,948.620293,948.64,536.24,480.14,004.620304,004.64,763.04,704.24,063.4Terminal4,063.44,905.94,784.04,185.3 YearNet IncomeActual 20202,030.420212,259.120222,677.820232,991.120243,341.020253,731.920263,918.520274,114.420284,320.220294,536.220304,763.0Terminal4,905.9

CAPM Model The Capital Asset Pricing Model (CAPM) is a mathematical model that describes the…

Use the following forecasted financials: (Certain cells were left intentionally blank by asker) You may need to use the CAPM model. Assume beta equals 1.09, the risk-free rate is 1.62%, and the market risk premium is 4.72%. d) Calculate the terminal value and the present value of the terminal value. Assume a long-term growth rate of 3%. e) Calculate Sherwin Williams value per share. The company has 263.3 million shares outstanding.

Use the following forecasted financials: (Certain cells were left intentionally blank by asker) You may need to use the CAPM model. Assume beta equals 1.09, the risk-free rate is 1.62%, and the market risk premium is 4.72%. d) Calculate the terminal value and the present value of the terminal value. Assume a long-term growth rate of 3%. e) Calculate Sherwin Williams value per share. The company has 263.3 million shares outstanding.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 30CE

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