What is the current value of the stock

Assignment Help Basic Statistics
Reference no: EM131968785

A company's most recent annual Free Cash Flow is $180,000,000. Free cash flow is expected to grow by 15% per year for the next 10 years and then grow by 3% per year thereafter. Investors required rate of return is 11%. What is the current value of the stock?

Reference no: EM131968785

Questions Cloud

Define what must the coupon rate be on the bonds : DMA Corporation has bonds on the market with 14.5 years to maturity, a YTM of 5.3 percent, a par value of $1000, and a current price of $965.
Finding the cash flow one year from today : A distributor of computer software instruction manuals plans to expand distribution. Annual sales are currently $220000 and are expected to be $300000.
Why is the reputation of an organization so important : When scheduling production of your products, what were the key factors considered? Why is the reputation of an organization so important?
Analyse the effect of the change in retention ratio : DOFAM Co. dividends per share are expected to grow at 4% rate per year. Analyist expect a dividend of $2 at the end of this year.
What is the current value of the stock : Free cash flow is expected to grow by 15% per year for the next 10 years and then grow by 3% per year thereafter. Investors required rate of return is 11%.
What is the current value of the stock : Free cash flow is expected to grow by 15% per year for the next 10 years and then grow by 3% per year thereafter. Investors required rate of return is 11%.
Number for overhaul not be the preferred alternative : What should be your "curent sales number for overhaul not be the preferred alternative?
What is the net present values of project : Your division is considering two investment projects, each of which requires an up-front expenditure of $2,424,000.00. You estimate that the investments.
Weighted average cost of capital : What is the firm's weighted average cost of capital if its debt-equity ratio is 0.58 and the tax rate is 30 percent?

Reviews

Write a Review

Basic Statistics Questions & Answers

  What if the ten people are arranged at random in a circle

If Ted and Jim are among 10 people arranged randomly in a line, what is the chance that they stand next to each other?

  Type of statistical analysis

The seller offered free shipping to 25 customers for randomly selected products and then collected and reviewed the customers' approval scores. What type of statistical analysis is most appropriate to determine whether the offering of free shippin..

  Number of accidents occurring per quarter

The following data set, from a study by Lucas (1985)2 , shows the number of accidents occurring per quarter (three months) at a DuPont company facility, over a 10-year period. The data set has been partitioned into two periods: Period I is the ?rs..

  What two assumptions are necessary if sample size is less

In using the standard normal distribution to construct a confidence interval for the population mean, what two assumptions are necessary if the sample size is less than 30?

  A computer chip manufacturer rejects 6 percent of the chips

a computer chip manufacturer rejects 6 percent of the chips produced because they fail to work properly when tested.

  Someone is going to play roulette 270 times betting a

someone is going to play roulette 270 times betting a dollar on a split each time. a split pays 17 to 1. find the

  Test the claim using a hypothesis test test the claim by

the herb gingkgo biloba is commonly used as a treatment to prevent demnetia. in a study of the effectiveness of this

  What other probabilities would you investigate and why

What applications does the probability distribution of shoppers have? What other probabilities would you investigate and why

  Explain the problem in using a normal model for given data

According to the Normal model, what percent of receivers would you expect to gain fewer yards than 2 standard deviations below the mean number of yards?

  Difference between the average population heights

Construct a confidence interval for the difference between the average population heights (pi - 142)

  A maintenance problem with the control panel

The Avery Co. factory has been having a maintenance problem with the control panel for one of its production processes. This control panel contains four identical electromechanical relays that have been the cause of the trouble.

  Compute and interpret the z-score

Calculate x2, s2 and s for the expense data. Show that the two different formulas for calculating s2 give the same result.

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