Calculate the stock price for the company

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1. Rexton Oil is an all-equity firm with 250 million of shares outstanding. Rexton currently has a cash flow of $290 Million of USDs and expects future free cash flows of $60 Millions per year. Management plans to use the cash to expand the firm's operations, which will in turn increase future cash free cash flows to $99 Millions per year. If the cost of capital of Rexton's investments is 9%, calculate the stock price for the company if the expansion where to happen.

2. What is the future value of $1,200, placed in a saving account for four years if the account pays 7.00%, compounded quarterly? (Your answer should be correct to two decimal places).

Reference no: EM132008056

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