Question

Company A just reported free cash flows of $24 million and expects FCF to grow at a constant rate of 5% forever. The company has $100 million in short-term investments, $200 million debt, $50 million preferred stock, and 10 million shares of common stock outstanding. Their cost of debt is 11% and they are located in a country with no corporate taxes. If the expected risk free rate is 2%, the expected return on the S&P 500 is 8%, and their beta is 1.5, what is the price of one share of Company A's common stock today?

Answer #1

Praxis Corp. is expected to generate a free cash flow (FCF) of
$7,890.00 million this year ( FCF1 = $7,890.00 million), and the
FCF is expected to grow at a rate of 20.20% over the following two
years ( FCF2 and FCF3 ). After the third year, however, the FCF is
expected to grow at a constant rate of 2.46% per year, which will
last forever ( FCF4 ). If Praxis Corp.’s weighted average cost of
capital (WACC) is 7.38%,...

Extensive Enterprise Inc. is expected to generate a free cash
flow (FCF) of $7,295.00 million this year (FCF1FCF1 = $7,295.00
million), and the FCF is expected to grow at a rate of 26.20% over
the following two years (FCF2FCF2 and FCF3FCF3). After the third
year, however, the FCF is expected to grow at a constant rate of
4.26% per year, which will last forever (FCF4FCF4). If Extensive
Enterprise Inc.’s weighted average cost of capital (WACC) is
12.78%, what is the...

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 $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.

1. 123 Warehousing is expected to generate a free cash flow
(FCF) of $5,730.00 million this year (FCF₁ = $5,730.00 million),
and the FCF is expected to grow at a rate of 25.00% over the
following two years (FCF₂ and FCF₃). After the third year, however,
the FCF is expected to grow at a constant rate of 3.90% per year,
which will last forever (FCF₄). Assume the firm has no nonoperating
assets. If 123 Warehousing’s weighted average cost of capital...

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...

Analysts project that Company F will generate negative $20
million FCF at the end of this year, positive $30 million next
year, and positive $40 million in year three. FCF is then expected
to grow at a constant rate of 7% per year forever. The company has
a wacc of 13%, $10 million in short-term investments, $100 million
in debt, and 10 million shares of stock outstanding. What is the
intrinsic stock price per share?

Extensive Enterprise Inc. is expected to generate a free cash
flow (FCF) of $2,450.00 million this year (FCF₁ = $2,450.00
million), and the FCF is expected to grow at a rate of 21.40% over
the following two years (FCF₂ and FCF₃). After the third year,
however, the FCF is expected to grow at a constant rate of 2.82%
per year, which will last forever (FCF₄). Assume the firm has no
nonoperating assets. If Extensive Enterprise Inc.’s weighted
average cost of...

The Stetson Corp. estimates that it will have free cash flow of
$20 million, $30 million and $40 million in the next three years
respectively. After that, FCF will grow at 8% indefinitely. Their
cost of capital is 9.4%, and they have $120 in debt, $30 million of
preferred stock and $20 million in short term investments. There
are 10 million shares of common stock outstanding. Estimate the
price per share of common stock using the FCF 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...

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