Computation of intrinsic value of stock

Assignment Help Finance Basics
Reference no: EM1357073

You must estimate the intrinsic value of Tsetseko Technologies' stock. Tsetseko's end-of-year free cash flow (FCF) is expected to be $17.50 million, and it is expected to grow at a constant rate of 7.00% a year thereafter. The company's WACC is 10.00%. Tsetseko has $125.00 million of long-term debt plus preferred stock, and there are 15.00 million shares of common stock outstanding. What is Tsetseko's estimated intrinsic value per share of common stock?

Reference no: EM1357073

Questions Cloud

Prepare a multiple step income statement : Which of the following statements is NOT an objective of financial reporting? An increase in inventory balance would be reported in a statement of cash flows using the indirect method
Experience trauma as a result of something occurring : Is it still possible to experience trauma as a result of something occurring so far away? If so, how is that possible. Please explain using theory/research in your response.
Find coefficient of kinetic friction between skis and snow : find the coefficient of kinetic friction between skis and snow.Three equal point charges, each with charge 1.80 mu C, are placed at the vertices of an equilateral triangle whose sides are of length 0.500 m. What is the electric potential energy U o..
Create library database schema structure : The library System stores 3 type of informations: Users ( USID, USNAME, USMob, USEmail, USDept,USStartDate, NofBooks). Create the library database schema Structure.
Computation of intrinsic value of stock : You must determine the intrinsic value of Tsetseko Technologies' stock. Tsetseko's end-of-year free cash flow (FCF) is expected to be $17.50 million, and it is expected to increase at a constant rate of 7 percent a year thereafter.
Explain what is competitive intelligence : Competitive Intelligence- explain what is competitive intelligence
Clinical situation of experiencing ptsd : Lets apply this to a clinical situation. How could the impact that emotions have on memory affect a client who is experiencing PTSD (posttraumatic stress disorder)?
Describe the impact of the financial crisis on automobile : Critically describe the impact of the financial crisis on the automobile industry's production and trade. Analyze the support measures that were taken by the governments to support the automobile sector.
What is the runners top speed : A 1600 kg car is traveling along a straight road at 17 m/s. Two seconds later its speed is 24m/s. What is the magnitude of the net force on car during this time.

Reviews

Write a Review

Finance Basics Questions & Answers

  Quarterly mortgage payment

If, over first year, there are quarterly repayments of $5 million on mortgage pool, how are the funds distributed.

  Specialization or research interest

Describe the specialization or research interest you desire to pursue if accepted. What are your personal and professional goals?

  Find the net cash flows from operating activities

The following data reflects cash flow & other activities of Framer Company for 6-months ended June 30

  Make an equation for the number of cups sold

Assume you had a lemonade stand, and when you charge $1 per cup pf lemonade you sell 60 cups. But when you raise the price to $1.50 you only sell thirty cups.

  Foreign currency exchange rate determination

One British pound can buy 1.62 U.S. dollars today in foreign exchange market and currency forecasters predict that U.S. dollar will depreciate by 12 percent against the pound over next 30 days.

  Calculation of intrinsic value of bond with given data

Calculation of intrinsic value of bond with given data and what is the intrinsic value (to the nearest dollar) of an SWH Corporation bond

  Advantages and disadvantage of risk in investment

The concept of risk is based on uncertainty about future outcomes. Write down the advantages and disadvantage of risk in investment.

  Determine the implied volatility

Applying the values of St, K, rf , and T specified, use your spreadsheet and trial and error to determine the implied volatility of a call with a price of $7.2568.

  Calculate basic earnings per share.

Hughes Technology has had net income of $450,000 in current fiscal year. there are 100,000 shares of common stock outstanding with convertible bonds, Determine Hughes's basic earnings per share.

  Solving capital budgeting problems

Beryl's Iced Tea currently rents a bottling equipment for $50,000 per year, including all maintenance expenses. It is planning buying a machine instead, and is comparing two options:

  Information about market structure

Select one of the market structures (monopoly, oligopoly, monopolistic competition, or perfect competition) and identify a company for that market structure.

  Computing total cost at economic order quantity

Determine Tech Products’ economic order quantity (EOQ) for motors? Compute its total cost at the EOQ?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd