Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. company has free cash flow of $120m last tear. inv

company has free cash flow of $120m last tear. investors belueve cahs flow will grow by...

90.2K

Verified Solution

Question

Finance

company has free cash flow of $120m last tear. investors beluevecahs flow will grow by 20% this year, 12% year 2, 6% annulythereafter. company has $1b in cash , $750 in debt, $500m isprefered stock. if common stock is 12%. wacc is 8% and has 10mshares outatanding . what is price per share of common stock?

Answer & Explanation Solved by verified expert
3.7 Ratings (581 Votes)
WACC 800 Year Previous year FCF FCF growth rate FCF current year Horizon value Total Value Discount factor Discounted value 1 120 2000 144 144 108 1333333    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

company has free cash flow of $120m last tear. investors beluevecahs flow will grow by 20% this year, 12% year 2, 6% annulythereafter. company has $1b in cash , $750 in debt, $500m isprefered stock. if common stock is 12%. wacc is 8% and has 10mshares outatanding . what is price per share of common stock?

Other questions asked by students

Q

A rectangular storage container with an open top is to have a volume of 8 m3....

Basic Math
Q

How should blood osmolarity (concentration) change after drinking a large volume of pure water? How do the...

Medical Sciences
Q

41 At the beginning of an enzyme catalyzed reaction the A formation of E P...

Biology
Q

Which is a plausible solution to human activities contributing to increasing amounts of carbon dioxide...

Biology
Q

4 State whether the following graphs are even odd or neither Determine their symmetry x...

Geometry
Q

Interpreting percentile ranks Government agencies keep data about the income distribution of the population The...

Statistics
Q

Let R be the flow rate of a gas through a cylindrical pipe for a...

Calculus
Q

Can you help me find the general journal please! * the adjusted book balance is...

Accounting
Q

Name some employee controls and supervision policies concerning fraud in the banking industry.

Accounting
Q

A legal wrangle developed between the Australian Taxation office and Hampton Ltd (HL) concerning the...

Accounting
Q

Gain or loss is determined by comparing the cash received and the market value of...

Accounting
Q

two parts to question P6-9 (similar to) Question Help (Annuity payments) You plan to...

Finance