What is general industries expected current share price

Assignment Help Financial Econometrics
Reference no: EM13335232

general industries is expected to generate $22 million, $26 million, $29 million, $30 million, and $32 million in free cash flows over the next five years, after which free cash flows are expected to grow at a rate of 3% per year. If the weighted average cost of capital is 8%, and General Industries has cash of $10 million, debt of $40 million, and $80 million shares outstanding, what is General Industries' expected current share price?

Reference no: EM13335232

Questions Cloud

What should be average beta of new stocks added to portfolio : Assume that the risk free rate is 4.5% and that the market risk premium is 5.5%. The manager expects to receive an additional $5,000,000 in funds soon.
Brazils popluation will double in about : Over the past 50 years , Brazils population growth rate has average about 2.3 percent. According to the rule of 70, Brazils popluation will double in about ?
Write a function called stream-map : Write a function that produces a stream of positive prime numbers . Use that stream to create a list of the product of all pairs of consecutive prime numbers up to a given value.
Is the value of intermediate goods and services included : Why must the total value of expenditures in the economy be equal to total income? Is the value of intermediate goods and services included in GDP? Explain.
What is general industries expected current share price : general industries is expected to generate $22 million, $26 million, $29 million, $30 million, and $32 million in free cash flows over the next five years, after which free cash flows are expected to grow at a rate of 3% per year.
Find the minimum power rating of the car : An electric car accelerates for 11 s by drawing energy from its 270-V battery pack. Find the minimum power rating of the car
Determine what is the companys wacc of par : The first bond issue has a face value of $85 million, has a 7 percent coupon, and sells for 97 percent of par. The second issue has a face value of $50 million, has an 8 percent coupon, and sells for 108 percent of par.
Find the magnitude and size of the point charge : A conducting spherical shell with a total uniformly distributed charge of -4Q on the combination of inner and outer surfaces has a point charge at the center of the shell
Calculate the net present value of this project to company : Timo Corporation, an amusement park, is considering a capital investment in a new exhibit. The exhibit would cost $144,980 and have an estimated useful life of 9 years. It believes it can sell the exhibit for $72,400 at that time.

Reviews

Write a Review

Financial Econometrics Questions & Answers

  A project report on banking system

The objective of this business report is to focus upon evaluating the current portfolio of Baituna home loans product of Bank Muscat and its volumes. It focus upon the current standing of the product in Oman and its performance on the basis of its vo..

  Questions on financial econometrics

Objective and multiple choice questions on Financial Econometrics responsible for creating financial statements.

  Option valuation report

Value Joseph's option position based on Black-Scholes method and analysis needs cover details behind the standard Black - Scholes method and explain detailed adjustment made to the standard BS method

  Conduct a bivariate nonlinear conintegration tests

Conduct a bivariate nonlinear conintegration tests using threshold Vector Error Correction (TVEC) methodology. Need to develop Matlab code.

  Calculate the expected exchange rate

Use a properly labelled IS-LM graph to analyze and illustrate the effect and calculate the expected exchange rate for the end of the year.

  Capm and capital structure

Reflect on the papers. Synthesize the key points they're making and consider the challenges of such points in a given context within your environment.

  Calculate the npv-irr and non-discounted payback period

Calculate the NPV, IRR, and Non-Discounted Payback Period using Excel - Outline and write the essay starting with the evidence-supported defense of your points and slowly transition into an address of opposing points.

  Objectives and principles guiding corporate governance

What is corporate governance and what are the objectives and principles guiding corporate governance?

  What is the capital budgeting process

What is capital budgeting, what is the capital budgeting process, what are the principles of capital budgeting and when do we make a capital investment?

  How do taxes affect the cost of capital

What is the cost of capital, what are WACC and MCC and how do taxes affect the cost of capital?

  How do you create or decrease leverage

What is leverage, how do you create or decrease leverage and why is leverage used?

  Calculate the wacc for both investment

Outline and write the essay starting with the evidence-supported defense of your points and slowly transition into an address of opposing points - Calculate the WACC for both investment. Calculate the NPV for investments discounted at their respec..

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