Value at year 4 = 25.7 (1+ 0.032) / ( 0.11 - 0.032) = 340.0307692
Year | Cash flow | PVF @11% | PV of cash flows |
1 | 9.7 | 0.900900901 | 8.738738739 |
3 | 20.4 | 0.811622433 | 16.55709764 |
4 | 25.7 | 0.731191381 | 18.7916185 |
4 | 340.0307692 | 0.658730974 | 223.9887999 |
Total | 268.0762547 |
Stock price = 268. 0762547/ 1.9 = 141.09
Tolo Co. plans the following repurchases: $9.7 million in one year, nothing in two years, and...
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