MacJolly Corporation is expecting a cash flow of P3,000,000 next year and it is expected to constantly increase by 4% for the next 2 years. After the third year, experts predict that the cash flow of the company will remain flat at P7,000,000 every year. The company has a total preferred shares of P10,000,000 and a total debt of P30,000,000. The required return is currently at 8% while the total common share outstanding is at 1,500,000 shares. 1. What is the value of the company?(Round off answer to two decimal places and include comma) 2. What is the value of the common stock per share?(Round off answer to two decimal places and include comma)

MacJolly Corporation is expecting a cash flow of P3,000,000 next year and it is expected to constantly increase by 4% for the next 2 years. After the third year, experts predict that the cash flow of the company will remain flat at P7,000,000 every year. The company has a total preferred shares of P10,000,000 and a total debt of P30,000,000. The required return is currently at 8% while the total common share outstanding is at 1,500,000 shares. 1. What is the value of the company?(Round off answer to two decimal places and include comma) 2. What is the value of the common stock per share?(Round off answer to two decimal places and include comma)

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter7: Corporate Valuation And Stock Valuation

Section: Chapter Questions

Problem 1P: Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1...

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