What is the estimated price of share of new media inc stock

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Reference no: EM131336090

1. We have a 12%, 15 year bond, which sells for $900. If the firm has the right to call it back after 6 years at par plus half a year’s coupon. Compute the YTM and the YTC. Which will the investor attain?

2. The firm-level FCF of New Media Inc. is estimated to be $9.8 million in 2016E. In 2016 it is expected to have 2.1 million shares outstanding. Using a relative valuation approach and the information below, what is the estimated price of a share of New Media Inc Stock.

$175.10

$56.48

$60.20

$126.42

Reference no: EM131336090

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