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 Wright First​ Aerodynmaics, Inc.​ (WFA). The companyhas been listed on the NYSE for over 50 years and is widelyregarded as a​ mature, rock-solid,​ dividend-paying stock. Thebrothers have gathered the following information about​ WFA'sstock:
Current dividend ​(Upper D 0​)=​$1.90​/share
Current free cash flow ​(FCF 0​)=$1.5 million
Expected growth rate of dividends and cash flows ​(g​)=8​%
Required rate of return ​(r​)=12​%
Shares outstanding = 400,000 shares
How would Wilbur and Orville each value this​ stock?
The stock price from​ Wilbur's valuation is?
The stock price from​ Orville's valuation is?
