Determine the Zenix current price per share

Assignment Help Accounting Basics
Reference no: EM133093431

Question - Zenix is a drone manufacturer. It currently (in 2021) has $52 million of debt and 300 million out-standing shares. It also has $90 million in cash. Zenix's free cash flows (FCF) for the next 3 years (i.e., for 2022, 2023 and 2024) are expected to be $54 million, $66 million and $72 million respectively. Thereafter, the FCF are expected to grow at the constant rate of 6% per year for the foreseeable future. Zenix has a weighted average cost of capital of 14%. Determine the Zenix's current price per share?

Reference no: EM133093431

Questions Cloud

What amount should tvedt report as a current liability : What amount should Tvedt report as a current liability for customer advance payments on its December 31, 2019, balance sheet
Providing practical examples at personal level : Personal debt is one way of financing our personal budget, however, it is said to be a double edged sword. Briefly explain by providing practical examples at pe
Beneficial ownership of the company : Changes the Air Canada can make to improve on following weaknesses (opportunities) (What if analysis) Weaknesses
Customer perception of quality customer service : Discuss the importance of the customer's perception of quality customer service. Do all customers share the same perception of what qualifies as quality custome
Determine the Zenix current price per share : Zenix is a drone manufacturer. It currently (in 2021) has $52 million of debt and 300 million out-standing shares. Determine the Zenix current price per share
What economic system does ireland follow : What economic system does Ireland follow? What political system does Ireland follow? How can these systems affect living and working in Ireland?
What is the expected growth rate of Dorpac dividends : Dorpac's equity cost of capital is 8.8%, and its dividends are expected to grow at a constant rate. What is the expected growth rate of Dorpac dividends
Related versus unrelated diversification : Over the years, Disney has made several acquisitions. Please discuss Disney's acquisitions in terms of:
Write about something that uses scholarly : Write about something that uses scholarly and peer-reviewed sources to provide an answer to your "Research Question."

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compute the cash payments for operating expenses

Bramble Corp. reports operating expenses of $91,000, excluding depreciation expense of $15,200 for 2022. Compute the cash payments for operating expenses

  What is difference between common stock and preferred stock

What is the difference between common stock and preferred stock? What is par value? How does a company choose their par value? What is a dividend?

  Which should not be called sales

Which of the following should not be called 'Sales'? Sale of item previously included in "Purchases". / Goods sold on credit. / Office fixtures sold

  How will the skills of the accountant need to change

How do you think the job of the accounting will change during this period? How will the skills/expertise of the accountant need to change

  What is the value of the abandonment option

How does your response to 'b' above highlight shortcomings of traditional NPV analysis? What is the value of the abandonment option

  Compute the cost per equivalent unit for materials

Beginning work in process 100,000 $ 29,000. Compute the cost per equivalent unit for materials using the FIFO method

  Prepare the journal entry dated october

Prepare the journal entry dated October 31 to transfer the cost of the completed units to finished goods inventory

  Determine the net income for the current fiscal year

Determine the net income for the current fiscal year (FY). Is this income up or down from the prior year?

  Prepare the plant assets section of the balance sheet

Prepare the plant assets section of the balance sheet at the end of the second year of the asset's useful life under the straight-line method

  What is the total net effect of errors on mysticals

What is the total net effect of errors on Mystical's 2013 working capital

  Capitalization vs expense rentals r us incurs the following

capitalization vs. expense. rentals r us incurs the following expenditures on an apartment building it ownsitem

  Determine how much should be recorded as goodwill

Determine how much should be recorded as Goodwill for this transaction? Annapolis had assets & liabilities appraised at the time of the sale in the amounts

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