Question

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.

Answer #1

Stock value per share = Today's value of company / No.of shares of stock outstanding | ||||||||

We can derive the today's value of company by using the following formula, | ||||||||

Value of company = [Current free cash flow *(1+growth rate)] / [Cost of capital - growth rate] | ||||||||

Value of company = [$50 million *(1+0.06)] / [0.11 - 0.06] | ||||||||

Value of company = $53 million / 0.05 | ||||||||

Value of Company = $1060 millions | ||||||||

Stock value per share = $1060 millions / 45 millions | ||||||||

Stock value per share
= $23.56 per share |
||||||||

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...

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...

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...

- 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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CORPORATE 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%....

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...

Beishan Technologies' end-of-year free cash flow (FCF1) is expected
to be $70 million, and free cash flow is expected to grow at a
constant growth 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 34 million shares of common stock outstanding, what
is the estimated intrinsic value per share of their common stock?
Your answer should be between 14.20 and 68.54

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...

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