(4pts) 14. Gupta Co. is undergoing a restructuring, and its free cash flows are expected...
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(4pts) 14. Gupta Co. is undergoing a restructuring, and its free cash flows are expected to vary considerably during the next few years. However, the FCF is expected to be $200,000,000 in Year 4, and the FCF growth rate is expected to be a constant 4.5% beyond that point. The WACC is 11.0%. What is the horizon (or continuing) value at t = 42 (4pts) 15. OCAZ Inc.'s stock has a required rate of return of 11.25%, and it sells for $887.50 per share. The dividend is expected to grow at a constant rate of 5.00% per year. What is the expected year-end dividend, D.? (5pts) 16. You must estimate the intrinsic value of IST Technologies' stock. The end-of-year free cash flow (FCF1) is expected to be $55.00 million, and it is expected to grow at a constant rate of 5.0% a year thereafter. The company's WACC is 9.0%, it has $105.0 million of long-term debt plus preferred stock outstanding, and there are 20.0 million shares of common stock outstanding. What is the firm's estimated intrinsic value per share of common stock
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