What is the value of nico stock

Reference no: EM13269815

Nico Corporation expects to generate free-cash flows of $200,000 per year for the next five years. Beyond that time, free cash flows are expected to grow at a constant rate of 5 percent per year forever. If the firm's average cost of capital is 15 percent, the market value of the firm's debt is $500,000, and Nico has a half million shares of stock outstanding, what is the value of Nico's stock?

Reference no: EM13269815

Questions Cloud

Determine the price of implementing a straddle position : Assuming the strike price is $30, stock price is $30, the risk free rate is 2%, and it is a 6 month option, the call premium is $3.59, determine the price of implementing a straddle position and explain when the option position will make money and..

What would be the new price of the bond : Compute the price of the bond (100=par) as of July 1, 2014 if the market requires a yield to maturity of 3.10%. If the market were to suddenly require the yield to rise to 3.50%, what would be the new price of the bond?

Explain the average atomic weight of the uranium atoms : A certain enriched sample of uranium contains 92.000% U-238 and 8.000% U-235. What is the average atomic weight of the uranium atoms in this sample? The isotopic masses of U-235 and U-238 are 235.0439 amu and 238.0508 amu, respectively.

Find the mean value of the expansions : For the most likely and pessimistic estimates, the expansion will be needed in 8 and 15 years, respectively. The expansion will cost $4.2 million. Use interest rate of 8%.

What is the value of nico stock : If the firm's average cost of capital is 15 percent, the market value of the firm's debt is $500,000, and Nico has a half million shares of stock outstanding, what is the value of Nico's stock?

Difference in solution'' freezing point from the pure solvent : If a 0.568m soloution had a 3.75 C difference in its freezing point from the pure solvent, what is the freezing point depression constant Kfp for the solvent

Calculate antenna radiation resistance and ohmic resistance : Assume a Hertzian dipole antenna model. (a) Calculate the antenna radiation resistance and Ohmic resistance, (b) Calculate the radiation efficiency of this antenna, (c) Calculate the input impedance, (d) calculate the antenna gain

Estimate firm a cost of equity for the new business : If the riskless rate is 3% and the market return is 8%, estimate Firm A's cost of equity for the new business using the CAPM.

How long can their monopoly last : How Long Can Their Monopoly Last? case study. Both Proctor & Gamble and Intuitive Surgical are also profiled in various discussions throughout The Innovator's DNA. You may integrate that information, as well as any other research regarding innovation..

User Account

All Pages