Calculate value per share using corporate valuation model

Reference no: EM131797207

Question: Ticker symbol: MMM Price close at fiscal year end: Bookmark Ticker symbol: MMM Price close at fiscal year end: $ 150.64 NAICS code: 322220

Dividend payout ratio: 39.58%

Dividend yield at fiscal year end: 2.722%

Dividends per share: $ 4.10 ROE: 41.28%

Common equity total: $ 12,048 million

Preferred stock total: 0

Long term debt total: $ 11,079 million

Interest expense: $ 180 million

P/E: 20.36

Tax rate: 29.05%

FCF/share for the next year: $ 3.935

Common shares outstanding for the next year: 609.33 million

The growth rate for free cash flow is 8.00%

Calculate:

1. The growth rate g

2. The cost of equity k

3. The valuation of the stock using the DDM

4. Total capital

5. Weight of debt

6. Weight of equity

7. Cost of debt

8. The value of the WACC

9. The value per share using the corporate valuation model

10. Based on the DDM is the stock overvalued or undervalued and by how much

11. Based on the corporate valuation model is the stock overvalued or undervalued and by how much

Reference no: EM131797207

Questions Cloud

What is a flowchart : How to Embrace Change in the workplace as employees and as a manager? What is a flowchart?

Project manager have for this uncompleted deliverable : A project manager is in the finishing stage of his project. What options does the project manager have for this uncompleted deliverable?

Concepts of leadership theories including values : What is the problem with Don Thompson (McDonald's CEO) as a leader? Please use the concepts of leadership theories including values, attitudes

Calculate the optimal production order quantity : What is the average inventory? Calculate the optimal production order quantity.

Calculate value per share using corporate valuation model : Based on the DDM is the stock overvalued or undervalued and by how much? Based on the corporate valuation model is the stock overvalued or undervalued?

Is stability good or bad for employers : Is stability good or bad for employers?

Films that maybe offensive in certain cultures : The internet makes it possible to sell all over the world digital products like music, books, and films that maybe offensive in certain cultures.

Established to cater for the rising demand : Air Conditioning was established to cater for the rising demand for electronics and home appliances by consumers in Saudi Arabia.

Calculate the total inventory cost : With the EOQ model, calculate the total inventory cost TC(Q), given that annual demand D = 8000 units per year,

User Account

All Pages