Wilbur and Orville are brothers.? They're both serious?investors, but they have different approaches to valuing stocks.?Wilbur, the older? brother, likes to use the dividend valuationmodel. Orville prefers the free cash flow to equity valuationmodel. As it turns? out, right? now, both of them are looking atthe same stock long dash —Wright First? Aerodynmaics, Inc.? (WFA).The company has been listed on the NYSE for over 50 years and iswidely regarded as a? mature, rock-solid,? dividend-paying stock.The brothers have gathered the following information about? WFA'sstock:
Current dividend ?( D 0?) equals =?$2.20?/share
Current free cash flow ?( FCF0?) equals =?$ 1.0 million
Expected growth rate of dividends and cash flows ?(g?) equals =7?%
Required rate of return ?(r?) equals = 13?%
Shares outstanding equals = 550,000 shares
How would Wilbur and Orville each value this? stock?
The stock price from? Wilbur's valuation is ?$___ . ?(Round tothe nearest? cent.)
The stock price from? Orville's valuation is ?$____. ?(Round tothe nearest? cent)
