A firm expects to generate $100 million in free cash flow in a year.  This free cash flow is expected to grow at a constant annual rate of 5%.  The firm has a 20% cost of capital, $300 million of debt, and 20 million shares of common stock outstanding. Compute the value of the firm's common stock (to the nearest dollar)

#6!

A company is projected to generate free cash flows of $457 million next year, growing at a 4.4% rate until the end of year 3. After that, cash flows are expected to grow at a stable rate of 2.8%. The company's cost of capital is 10.1%. The company owes $268 million to lenders and has $24 million in cash. If it has 179 million shares outstanding, what is your estimate for its share value? Round to one decimal place.

A firm expects to generate $100 million in free cash flow in a year.  This free cash flow is expected to grow at a constant annual rate of 5%.  The firm has a 19% cost of capital, $366 million of debt, and 20 million shares of common stock outstanding. Compute the value of the firm. (show your answers in millions - example, $10,000,000 would be entered as 10)

ABC's free cash flow to equity holders (FCFE) during the current year is $130 million, which is expected to grow at a constant rate of 4% in the future. The firm's market cap rate is 10%. What is the firm's total equity value (in $ million)?

A company projects a rate of return of 20% on new projects. The executive team plan to plow back 20% of all earnings into the firm. Earnings this year will be $6 per share, and investors expect a rate of return of 12% on stocks facing the same risks as the company. 1) what is the sustainable growth rate  2) what is the stock price  3) What is the present value growth opportunities  4) what is the P/E ration  5) what would the price and PE ratio be if the firm paid out all earnings as dividends?

A company had $15 of sales per share for the year that just ended. You expect the company to grow their sales at 5.5 percent for the next five years. After that, you expect the company to grow 3.5 percent in perpetuity. The company has a 15 percent ROE and you expect that to continue forever. The company's net margins are 6 percent and the cost of equity is 8 percent. Use the free cash flow to equity model to value this stock. Do not round intermediate calculations. Round your answer to the nearest cent.

Consider a firm that just paid a dividend of $5.50 per share. The company expects growth in the coming 2 years to be 17%. After the second year, the firm expects dividends to grow at a constant rate of 3% per year. Assume the required rate of return is 10%

A firm expects to have net income of $5,000,000 during the next year.  The company’s target capital structure is 60% debt and 40% equity.  The company's director of capital budgeting has determined that the optimal capital budget for the coming year is $5,000,000.  If MSL Tech follows a residual distribution policy (with all distributions in the form of dividends) to determine the coming year’s dividend, then what is the firm’s expected dividend payments? $2,000,000                       $3,000,000                       $5,000,000                       $6,000,000 Using the data from Question 31, find the dividend payout ratio for the company.     20%     40%     60%     50%

Assume that the average firm in C&J Corporation's industry is expected to grow at a constant rate of 5% and that its dividend yield is 8%. C&J is about as risky as the average firm in the industry and just paid a dividend (D0) of $2.5. Analysts expect that the growth rate of dividends will be 50% during the first year (g0,1 = 50%) and 30% during the second year (g1,2 = 30%). After Year 2, dividend growth will be constant at 5%. What is the required rate of return on C&J's stock? What is the estimated intrinsic price per share? Do not round intermediate calculations. Round the monetary value to the nearest cent and percentage value to the nearest whole number.