## [answered] a. Suppose you believe KCP's initial revenue growth ra

Please do not give me some generic answers from the website as the sales here is \$510.3million, not \$518million

a. Suppose you believe KCP's initial revenue growth rate will be between 4 % and 11 % (with growth slowing in equal steps to 4 % by year 2011). What range of share prices for

KCP is consistent with these forecasts???(Select the best choice below.)

A. The range of share prices consistent with these forecasts is from \$ 26.94 to \$ 21.11.

B. The range of share prices consistent with these forecasts is from \$ 19.46 to \$ 24.10.

C. The range of share prices consistent with these forecasts is from \$ 18.57 to \$ 26.12.

D. The range of share prices consistent with these forecasts is from \$ 24.42 to \$ 23.59.

b. Suppose you believe KCP's EBIT margin will be between 7 % and 10 % of sales. What range of share prices for KCP is consistent with these forecasts (keeping KCP's initial revenue growth at 9 % with growth slowing in equal steps to 4 % by year 2011)???(Select the best choice below.)

A. The range of share prices consistent with these forecasts is from \$ 26.94 to \$ 21.11.

B. The range of share prices consistent with these forecasts is from \$ 24.42 to \$ 23.59.

C. The range of share prices consistent with these forecasts is from \$ 19.46 to \$ 24.10.

D. The range of share prices consistent with these forecasts is from \$ 18.57 to \$ 26.12.

c. Suppose you believe KCP's weighted average cost of capital is between 10 % and 12 %. What range of share prices for KCP is consistent with these forecasts (keeping KCP's initial revenue growth and EBIT margin at 9 % with growth slowing in equal steps to 4 % by year 2011)???(Select the best choice below.)

A. The range of share prices consistent with these forecasts is from \$ 24.42 to \$ 23.59.

B. The range of share prices consistent with these forecasts is from \$ 18.57 to \$ 26.12.

C. The range of share prices consistent with these forecasts is from \$ 19.46 to \$ 24.10.

D. The range of share prices consistent with these forecasts is from \$ 26.94 to \$ 21.11.

d. What range of share prices is consistent if you vary the estimates as in parts (a), (b), and (c) simultaneously? That is:

Case 1

Case 2

Revenue growth rate

4 %

11%

EBIT margin 7% 10%

WACC

10 % 12%

(Select the best choice below.)

A. The range of share prices consistent with these forecasts is from \$ 19.46 to \$ 24.10.

B. The range of share prices consistent with these forecasts is from \$ 26.94 to \$ 21.11.

C. The range of share prices consistent with these forecasts is from \$ 24.42 to \$ 23.59.

D. The range of share prices consistent with these forecasts is from \$ 18.57 to \$ 26.12.

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