Next year's free cash flows for a target firm are expected to be $1,835,000, with constant growth of 3% per year for the foreseeable future. The firm's WACC is $16% and current assets are valued at $840,000, with current liabilities estimated at $756,000. Long term debt has a market value of $8.5 million and the firm has outstanding preferred stock worth $900,000. If there are 250,000 common shares outstanding, what is the estimated market value of the firm's stock?

Laurel Enterprises pays annual dividends, and the next dividend is expected to be in one year. Laurel expects earnings next year of $3.58 per share and has a 50% retention rate, which it plans to keep constant. Its equity cost of capital is 11%, which is also its expected return on new investment; this is expected to continue forever. What do you estimate the firm's current stock price to be? (Hint: its next dividend is due in one year.) C The current stock price will be $ (Round to the nearest cent.)

What is the cash cow value and the value of its growth opportunities (NPVGO) if a corporation has current earnings of $5 per share and expects to be able to make an investment of 20% of its earnings next year in a new one-time project with an expected return on invested capital of 24%? The discount rate for the firm is 8%. Cash cow value is $62.50 and NPVGO is $1.85 Cash cow value is $20.83 and NPVGO is $2 Cash cow value is $62.50 and NPVGO is $14 Cash cow value is $25.00 and NPVGO is $3 Cash cow value is $25.00 and NPVGO is $3

Nikul

NIKE Corporation will pay an annual dividend of $0.65 one year from now. It expects this dividend to grow at 12% per year thereafter until the fifth year. Thereafter, growth will level off at 2% per year. What is the value of a share of Gillette stock if the firm's equity cost of capital is 8% ?

Consider a firm that distributes the entire annual earnings to its shareholders through dividends once a year. The firm’s dividends are expected to grow at a rate of 8% per year for the next 5 years until the end of 2035. From 2036 on, the firm’s growth rate is expected to be 4% per year forever. Assume that investors command 12% return on the investments comparable to the firm’s stock. In addition, the firm has just paid an annual dividend of $10 per share at the end of 2030. Required: If you were considering buying the firm’s shares on the first day of 2031, at what price would you buy the shares?

I suppose the firms FCF is expected to be $30mn in one year $20mn in two years and there after the firms FCF’s are expected to increase by 5% a year for the forseeable future. Further suppose that the market value of the firms debt is $50mn and the market value of the firms preferred stock is $20mn and that the firm has 20 million shares of common stock outstanding. If the required return on the firms assets is 10% how much should the stock price per share be selling for?

DataCore INc. has an all-equity capital structure. However, the firm is considering a recapitalization that would structure the firm with 25% debt and 75% equiy by issuing an appropriate amount of debt and repurchasing an equal amount of common stock; the debt is expected to have a 5% coupon rate. The firm expects the following scenarios over the next year for EBIT: Outlook        Probability       EBIT Good             35%                  $800,000 Average        40%                   $525,000 Poor             25%                    $75,000 The firm currently has 200,000 shared of common stock outstanding at $43 per share. The firm is in a 0% tax bracket 1. Determine the expected earnings before interest and taxes, net income, and earnings per share  (a) if the firm maintains its current unlevered capital structure and (b) if it recapitalizes at 25% debt and uses the procedes to repurchase common stock. 2. Following the assumptions behind M&M's Proposition I, calculate the…

Banco Tech is an early stage financial technology firm. Earnings this year where $20 per share and are expected to grow at 20% per year for the next three years. Banco does not plan to pay a dividend until three years time, when the payout ratio will be 43%. Dividends are expected to grow at 6% thereafter. The required rate of return is 9%. Calculated intrinsic value.

ABC Corporation just paid an annual dividend of $0.75. Analysts expect this dividend to grow at 10% in 2020, 8% in 2021, 5% in 2022, and then maintain a constant growth rate of 2%. If the expected cost of capital is 7% what is the present value of the stock?