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Valuation
Scampini Technologies is expected to generate $50 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 14%. 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 |

Answer #1

stock's value per share = value of equity/no. of shares of stock outstanding

Scampini has no debt or preferred stock. so, it's equity value is equal to its firm value.

firm value = [free cash flow next year*(1 + indefinite FCF growth rate)]/(WACC - indefinite FCF growth rate)

firm value = [$50 million*(1 + 0.07)]/(0.14 - 0.07) = ($50 million*1.07)/0.07 = $53.5 million/0.07 = $764.2857142857143 million

so, equity value is $764.2857142857143 million.

stock's value per share = $764.2857142857143 million/35 million = $21.84

the stock's value per share is $21.84.

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 7% 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? 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 $200 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, preferred
stock, or non-operating assets, 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 $50 million in
free cash flow next year, and FCF is expected to grow at a constant
rate of 6% per year indefinitely. Scampini has no debt or preferred
stock, and its WACC is 11%. 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 $25 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 10%. 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 the...

CORPORATE VALUATION
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 7% 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...

11)
Holt Enterprises recently paid a dividend, D0, of
$3.00. It expects to have nonconstant growth of 22% for 2 years
followed by a constant rate of 7% thereafter. The firm's required
return is 14%.
How far away is the horizon date?
The terminal, or horizon, date is the date when the growth rate
becomes nonconstant. This occurs at time zero.
The terminal, or horizon, date is the date when the growth rate
becomes constant. This occurs at the beginning...

The company ABC presented the following FCF:
Year
1
2
3
4
5
FCF
10
12
15
18
21
For the following years (6 to infinity), the FCF are expected to
grow at 3% rate. The WACC of the firm is 14%. Using the discounted
free cash flow model, what is the Enterprise Value of this
firm?

The company ABC presented the following FCF:
Year
1
2
3
4
5
FCF
10
12
15
18
21
For the following years (6 to infinity), the FCF are expected to
grow at 3% rate. The WACC of the firm is 14%. Using the discounted
free cash flow model, what is the Enterprise Value of this
firm?

11. More on the corporate valuation model
Galaxy Corp. is expected to generate a free cash flow (FCF) of
$14,415.00 million this year (FCF₁ = $14,415.00 million), and the
FCF is expected to grow at a rate of 26.20% over the following two
years (FCF₂ and FCF₃). After the third year, however, the FCF is
expected to grow at a constant rate of 4.26% per year, which will
last forever (FCF₄). Assume the firm has no nonoperating assets. If
Galaxy...

- 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 5% per year indefinitely. Scampini has no debt or preferred
stock, and its WACC is 15%. If Scampini has 55 million shares of
stock outstanding, what is the stock's value per share?
- Enterprises recently paid a dividend, D0, of $3.75.
It expects to have nonconstant growth of 15% for 2 years followed
by...

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