What is the stock value per share

Assignment Help Financial Management

Reference no: EM132011637

1) Scampini Technologies is expected to generate $50 million in free cash flow next year, and FCF is expected to grow at a constant rate of 3% per year indefinitely. Scampini has no debt or preferred stock, and its WACC is 14%. If Scampini has 65 million shares of stock outstanding, what is the stock's value per share? Round your answer to two decimal places.

Each share of common stock is worth $ , according to the corporate valuation model.

2) A stock is expected to pay a dividend of $2.00 at the end of the year (i.e., D1 = $2.00), and it should continue to grow at a constant rate of 10% a year. If its required return is 14%, what is the stock's expected price 4 years from today? Round your answer to two decimal places. Do not round your intermediate calculations.

3) You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $2.75 a share at the end of the year (D1 = $2.75) and has a beta of 0.9. The risk-free rate is 5.4%, and the market risk premium is 4.5%. Justus currently sells for $39.00 a share, and its dividend is expected to grow at some constant rate, g. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years? (That is, what is ?) Round your answer to two decimal places. Do not round your intermediate calculations.

Reference no: EM132011637

Questions Cloud

Expected return and standard deviation of her portfolio : Calculate the expected return and standard deviation of her portfolio.

Use the spot market in foreign exchange : How would the U.S.-based storefront in China use the spot market in foreign exchange?

What is the required rate of return on stock with beta : Assume that the risk-free rate is 6.5% and the required return on the market is 8%. What is the required rate of return on a stock with a beta of 1.8?

What is the expected rate of return on the software venture : What is the expected rate of return on the software venture? Calculate the variance and standard deviation of the rates of return for the software venture?

What is the stock value per share : If Scampini has 65 million shares of stock outstanding, what is the stock's value per share?

Annual market risk premium for small firm common stocks : Determine the historical average annual market risk premium for small firm common stocks.

Determine a sinusoidal equation : Graph the position in meters of the point P above the surface of the water during one rotation - Determine a sinusoidal equation that best describes the graph

Phenomenon of vehicle tripping : The mass of the SUV is 2300 kg and its mass moment of inertia about a longitudinal axis through the mass center G

Determine design speed and denection angle and chord length : A horizontal curve is to be designed for a two-lane road in mountainous terrain - Determine design speed and station or the PC

User Account

All Pages