Calculate what should be the company stock price today

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Reference no: EM132070152

Corporate Valuation

Today is December 31, 2017. Use the following information that applies to Samppel Corporation to calculate what should be the company’s stock price today. (Corporate Valuation Method)

After-tax operating income [EBIT(1 – T)] for 2016 is expected to be $1,150 million

The depreciation expense for 2016 is expected to be $110 million

The capital expenditures for 2016 are expected to be $650 million

No change is expected in net working capital

The free cash flow is expected to grow at a constant rate of 7% per year

The required return on equity is 15%

The WACC is 9%

The market value of the company’s debt is $3.5 billion 300 million shares of stock are outstanding.

Reference no: EM132070152

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