What is the value-share using the dividend discount model

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Question - Texas Instruments had an EPS of $3.20 in 2018 and paid dividends of $3.52/share. They reported depreciation of $315 million, and CAPEX of $475 million. They have 160 million shares outstanding valued at $51 /share. Texas Instruments had $1.6 billion in debt and will keep the same debt and equity structure. Earnings will grow 7% a year and the stock's beta is 1.1. The risk-free rate is 6.25%. What is the value/ share using the Dividend Discount Model? What is the value/ share of question #27 using the Free Cash Flow Model?

Reference no: EM132949194

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