User Account

All Pages

Estimate common stock value per share

Assignment Help Business Management
Reference no: EM132382473

IPO being offered for $28.46 a share. Apply the free cash flow valuation model to the firms data listed.

Free cash flow

2020 740,000. Growth rate of FCF , beyond 2023 :6%

2021 860,000. Weighted average cost capital 8%

2022 990,000. Market value of all debts 8,940,000

2023. 1,070,000. Market value preferred stock 3,570,000

Number shares 1,100,000

A. Using the free flow valuation model. Estimate common stock value per share. The value is?

B. Should a person buy the stock based on part A

C. The growth rate in FCF beyond 2023 is 7% instead 6%. What affect would the findings on responses in part A and B?

Reference no: EM132382473

Questions Cloud

How many us dollars are needed to purchase 3052 swiss : The exchange rate is 0.9706 Swiss francs per U.S. dollar. How many U.S. dollars are needed to purchase 3,052 Swiss francs?
Netherlands is planning to visit you in the united states : You estimate the cost of her trip at $2,531. What is the cost to her in euros if 1 Euro = $1.1559?
Write a class named jar whose instances represent glass jars : For this problem you are to write a class named Jar whose instances represent glass jars like you find in a kitchen. Here's how Jars behave.
Switzerland over summer and brought back : How many U.S. dollars will you get if you exchange your swiss francs for U.S. dollars? The exchange rate is 1 U.S dollar = 1.0638 swiss francs.
Estimate common stock value per share : Using the free flow valuation model. Estimate common stock value per share. The value is?
What are the total shortage costs : The chairs are sold out before they are restocked. What are the total shortage costs?
CSC71001 Programming Assignment Problem : CSC71001 Programming I Assignment help and solution, Southern Cross University, Assessment help - illustrate a particular concept, including an explanation
Write a program to prompt the user for hours and rate : Write a program to prompt the user for hours and rate per hour using input to compute gross pay. Award time-and-a-half for the hourly rate.
How many orders will company place if it follows economic : How many orders will company place if it follows the economic order quantity model?

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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