ZuoTi.Pro
Question

A firm’s expected free cash flow is $25.2 million beginning in one year and continuing in...

A firm’s expected free cash flow is $25.2 million beginning in one year and continuing in perpetuity at a growth rate of 3.5% and a WACC of 15.5%. It has 85 million shares outstanding. It also has bonds with a total market value of $0.875 billion and holds $1,365 million in cash. What is its stock price according to the FCF Method? A) $7.90 B) $8.24 (ANSWER) C) $2.69 D) $2.47

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Value of company = fcfi DAcc - 3 25-2 155 - 035 210 stock Price i Value of company - deft + Cash No. of shares = 210 - 875 +

0 0
Add a comment
Know the answer?
Add Answer to:
A firm’s expected free cash flow is $25.2 million beginning in one year and continuing in...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • We know that Costco’s free cash flow (FCF) is $3,330 million, the financial liability is $22,977...

    We know that Costco’s free cash flow (FCF) is $3,330 million, the financial liability is $22,977 million, the liquid asset is $7,259 million, the shares outstanding is 440 million, and the stock price per share is $302.62. According to the consensus of financial analysts following Costco, the WACC is 8%, and the 5-year growth rate of FCF is about 9.3%. What is the market’s expectation for the long-term growth rate of Costco’s FCF? A. 5.17% B. 4.80% C. 6.34% D....

  • Scampini Technologies is expected to generate $25 million in free cash flow next year, and FCF...

    Scampini Technologies is expected to generate $25 million in free cash flow next year, and FCF is expected to grow at a constant rate of 7% per year indefinitely. Scampini has no debt or preferred stock, and its WACC is 13%. If Scampini has 45 million shares of stock outstanding, what is the stock's value per share? Round your answer to two decimal places. Each share of common stock is worth $   , according to the corporate valuation model.

  • Scampini Technologies is expected to generate $125 million in free cash flow next year, and FCF...

    Scampini Technologies is expected to generate $125 million in free cash flow next year, and FCF is expected to grow at a constant rate of 7% per year indefinitely. Scampini has no debt or preferred stock, and its WACC is 12%. If Scampini has 50 million shares of stock outstanding, what is the stock's value per share? Round your answer to two decimal places. Each share of common stock is worth $ according to the corporate valuation model.

  • Scampini Technologies is expected to generate $125 million in free cash flow next year, and FCF...

    Scampini Technologies is expected to generate $125 million in free cash flow next year, and FCF is expected to grow at a constant rate of 7% per year indefinitely. Scampini has no debt or preferred stock, and its WACC is 13%. If Scampini has 35 million shares of stock outstanding, what is the stock's value per share? Round your answer to two decimal places. Each share of common stock is worth $ , according to the corporate valuation model.

  • Scampini Technologies is expected to generate $175 million in free cash flow next year, and FCF...

    Scampini Technologies is expected to generate $175 million in free cash flow next year, and FCF is expected to grow at a constant rate of 3% per year indefinitely. Scampini has no debt or preferred stock, and its WACC is 13%. If Scampini has 65 million shares of stock outstanding, what is the stock's value per share? Round your answer to two decimal places. Each share of common stock is worth $ , according to the corporate valuation model.

  • Scampini Technologies is expected to generate $150 million in free cash flow next year, and FCF...

    Scampini Technologies is expected to generate $150 million in free cash flow next year, and FCF is expected to grow at a constant rate of 8% per year indefinitely. Scampini has no debt or preferred stock, and its WACC is 15%. If Scampini has 45 million shares of stock outstanding, what is the stock's value per share? Do not round intermediate calculations. Round your answer to the nearest cent. Each share of common stock is worth $ , according to...

  • Scampini Technologies is expected to generate $150 million in free cash flow next year, and FCF...

    Scampini Technologies is expected to generate $150 million in free cash flow next year, and FCF is expected to grow at a constant rate of 5% per year indefinitely. Scampini has no debt or preferred stock, and its WACC is 15%. If Scampini has 60 million shares of stock outstanding, what is the stock's value per share? Do not round intermediate calculations. Round your answer to the nearest cent. Each share of common stock is worth $   , according to the...

  • Scampini Technologies is expected to generate $150 million in free cash flow next year, and FCF...

    Scampini Technologies is expected to generate $150 million in free cash flow next year, and FCF is expected to grow at a constant rate of 3% per year indefinitely. Scampini has no debt or preferred stock, and its WACC is 14%. If Scampini has 55 million shares of stock outstanding, what is the stock's value per share? Do not round intermediate calculations. Round your answer to the nearest cent. Each share of common stock is worth $ ______ , according...

  • Scampini Technologies is expected to generate $200 million in free cash flow next year, and FCF...

    Scampini Technologies is expected to generate $200 million in free cash flow next year, and FCF is expected to grow at a constant rate of 8% per year indefinitely. Scampini has no debt or preferred stock, and its WACC is 11%. If Scampini has 55 million shares of stock outstanding, what is the stock's value per share? Do not round intermediate calculations. Round your answer to the nearest cent. Each share of common stock is worth $ , according to...

  • Scampini Technologies is expected to generate $150 million in free cash flow next year, and FCF...

    Scampini Technologies is expected to generate $150 million in free cash flow next year, and FCF is expected to grow at a constant rate of 5% per year indefinitely. Scampini has no debt or preferred stock, and its WACC is 12%. If Scampini has 60 million shares of stock outstanding, what is the stock's value per share? Do not round intermediate calculations. Round your answer to the nearest cent. Each share of common stock is worth $ , according to...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
Active Questions
ADVERTISEMENT