$13.85
Market Value of firm =320-170+30
=$180
Price of each share =$180/13
=$13.85
The Present Value of all the expected future free cash flow of your firm is $320...
The present value of JECK Co.'s expected free cash flow is $109 million. If JECK has $25 million in debt,$6 million in cash, and 2.7 million shares outstanding, what is its share price? The company's share price is? (Round to the nearest cent.)
The present value of JECK Co.'s expected free cash flow is $106 million. If JECK has $27 million in debt, $6 million in cash, and 2.6 million shares outstanding, what is its share price?
Use the corporate, or free cash flow, model to estimate Petry Corporation's intrinsic value. The firm's WACC is 10.00%, its end-of-year free cash flow (FCF1) is expected to be $65.0 million, the FCFs are expected to grow at a constant rate of 5.00% a year in the future, the company has $200 million of long-term debt and preferred stock, and it has 25 million shares of common stock outstanding. Assume the firm has zero non-operating assets. What is the firm's...
Basic Stock Valuation: Free Cash Flow Valuation Model The recognition that dividends are dependent on earnings, so a reliable dividend forecast is based on an underlying forecast of the firm's future sales, costs and capital requirements, has led to an alternative stock valuation approach, known as the free cash flow valuation model. The market value of a firm is equal to the present value of its expected future free cash flows: Market value of company FCF (1+WACC) + FCF (1+WACC)...
Question 1 Firm Bullcat is an all-equity firm that has expected free cash flows of $10M per year in perpetuity starting next year. The cost of capital for this unlevered firm is 10 percent. The firm has 5 million shares outstanding. Assume a perfect market. a) Construct the current market value balance sheet E+L in million dollars cash existing asset Total Asset Debt Equity Total E+ b) What is the current share price of Bullcat stock? Firm Bullcat is also...
Question 16 5 pts Beishan Technologies' end-of-year free cash flow (FCF 1) is expected to be $70 million, and free cash flow is expected to grow at a constant rate of 5% a year in the future. The firm's WACC is 10%, and it has $600 million of long-term debt and preferred stock. If the firm has 18 million shares of common stock outstanding, what is the estimated intrinsic value per share of their common stock? Your answer should be...
RAD Co.’s most recent free cash flow was $1,000,000. The firm is expected to grow free cash flow at a constant rate of 3% per year forever. RAD Co. has $2,000,000 of debt, $800,000 of preferred stock, and 100,000 shares outstanding. The Weighted Average Cost of Capital is 7%. Compute firm value and today’s stock price.
A firm in mine industry generates risky cash flows with an expected value of $ 750, 000 per year (perpetuity). Using direct tracking method of valuation, the CFO of the firm has found that in order to replicate the cash flows, the amount of money invested in the market portfolio (i.e., the term b) needs to be equal to the amount of money invested in the risk-free asset (i.e., the term a). The financial market is mean-variance efficient, the safe...
Question 16 5 pt Beshan Technologies' end-of-year free cash flow (FCF) is expected to be $70 million, and free cash flow is expected to grow at a constant rate of 5% a year in the future. The firm's WACC is 10% and it has S600 lion of long-term debt and preferred stock. If the firm has 26 millon shares of common stock outstanding, what is the estimated intrinsic value per share of their common stock? Your answer should be between...
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.