Packaging Corporation of America (PKG) ‒ That’s right. They make cardboard boxes and shipping containers. ‒ is currently selling for $181 per share. The dividends for the next three years are expected to be $5.00 for 2024, $5.60 for 2025, and $6.00 for 2026. The Value Line forecasts the price per share to be between $240 to $345 by the end of 2026. We will use $250. If we desire a rate of return of 10%, using the Discounted Cash Flow Model, what price would we value this stock? Would we consider PKG to be a potentially good investment?

The Clipper Sailboat Company is expected to earn $5 per share next year. The company will have a return on equity of 16 percent and the company will grow 4 percent in the future. The company has a cost of equity of 13 percent. Given that information, answer the following questions. a. What is the value of the company's stock? Do not round intermediate calculations. Round your answer to the nearest cent. $ b. What is the present value of the growth opportunity? Do not round intermediate calculations. Round your answer to the nearest cent. $ c. Assume that the growth rate is only 3 percent. What would the appropriate P/E multiple be for this stock? Do not round intermediate calculations. Round your answer to two decimal places. x