Based on the value-based management model

Assignment Help Financial Management

Reference no: EM131972793

CCV Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be $0, but its FCF at t = 2 and t=3 will be $15 million and $30 million respectively. After Year 3, FCF is expected to grow at a constant rate of 5% per year forever. The firm's weighted average cost of capital is 10%. The firm has a total amount of non-operating assets equal to $30 million. The firm has a total amount of debt equal to $150 million, and has 5 million common shares outstanding. what is the price per share based on the value-based management model?

Reference no: EM131972793

Questions Cloud

Computech corporation is expanding rapidly : Computech Corporation is expanding rapidly and currently needs to retain all of its earnings, what is the value of the stock today?

What are annual coupon rate and yield to? maturity : A 11?year bond pays interest of $27.60 ?semiannually, has face value of $1,000? and is selling for $792.28. What are annual coupon rate and yield to? maturity?

Using the black-scholes option pricing model : Using the Black-Scholes option pricing model, calculate the value of a European call option on S&P500 under the following parameters.

What should be the selling price of the? bond : Investors require? a(n) 6.2% annual return on these bonds. What should be the selling price of the? bond?

Based on the value-based management model : what is the price per share based on the value-based management model?

Standard deviation of the rate of return on her portfolio : What will be the standard deviation of the rate of return on her portfolio?

Recreational tennis racket-what will cash flows for project : You are evaluating a project for The Ultimate recreational tennis racket, guaranteed to correct that wimpy backhand. What will the cash flows for this project?

How will this impact a portfolio made up of stocks-bonds : How will this impact a portfolio made up of stocks, bonds, cash and foreign exchange.

Monthly payment amounts and year-end loan balances : Compute the monthly payment amounts and year-end loan balances for the first 5 years. What will be the yield on the loan over that period?

User Account

All Pages