What is the fair value of a share

Assignment Help Finance Basics
Reference no: EM132595923

A company will deliver Enterprise Free Cash Flows of 100M at the end of the current year, 120M at the end of the next year, and thereafter you expect the cash flows to grow 6%.

If there are 1M shares in issue, the company's debt is valued at 375M and its cost of capital is 12%, what is the fair value of a share?

Reference no: EM132595923

Questions Cloud

Global companies-global teams-globalization strategy : Pick one of the following terms for your research: economies of scale, economies of scope, global companies, global teams, globalization strategy
Compute the gain on sale using straight line depreciation : On December 31, 2022, Joel Harvey sold the truck for $7,000 cash. Compute the gain on sale using straight line depreciation method.
How much should corcoran corporation record for the cost : Compute depreciation for the years 2018 through 2022. The machinery & equipment is expected to run for 20,000 hours in five years.
What is meant by comprehensive audit : What is meant by comprehensive audit? Should a comprehensive audit be carried out by an independent auditor
What is the fair value of a share : A company will deliver Enterprise Free Cash Flows of 100M at the end of the current year, 120M at the end of the next year
Impact of language on critical thinking and decision making : Explain the impact of language on critical thinking and decision making - Include detailed speaker notes explaining the content on each slide
What will be average cost per unit : On Jan 5, Mead Electronics have two generators in its inventory, each acquired at a purchase cost of $1000 what will be its average cost per unit?
Which cost flow assumption result in less income tax expense : Computer industry is experiencing continuously lower costs. Which cost flow assumption will result in less income tax expense for this company?
Determine optimal capital structure for moses company : Calculate degree of financial leverage taken into account 50% tax rate. Determine optimal capital structure for Moses Company.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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