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ABC Corp, has 100 million shares outstanding. Analysts expect the firm to have earnings of $500 million in one year. ABC plans to pay out 30% of its eamings in dividends and use another 20% of the earnings to repurchase shares in each year. If the firm's equity cost of capital is 14%, the weighted average cost of capital is 10%, and the eamings are expected to decline at a constant rate of 2% per year, then ABC's stock price per share Instruction Type ONLY your numerical answer in the unit of dolars, NO S sign, NO comma sign, and round it to the nearest integer. Eg your stock price is $ 65, then just input
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- Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1 and by 5% in Year 2. Its operating profitability ratio (OP) is 10%, and its capital requirement ratio (CR) is 80%? What are the projected sales in Years 1 and 2? What are the projected amounts of net operating profit after taxes (NOPAT) for Years 1 and 2? What are the projected amounts of total net operating capital (OpCap) for Years 1 and 2? What is the projected FCF for Year 2?Portage Bay Enterprises has $1 million in excess cash, no debt, and is expected to have free cash flow of $ 9 million next year. Its FCF is then expected to grow at a rate of 3% per year forever. If Portage Bay's equity cost of capital is 13% and it has 8 million shares outstanding, what should be the price of Portage Bay stock?Sims Manufacturing is expected to generate $180 million in free cash flow next year, and FCF is expected to grow at a constant rate of 4% per year indefinitely. Sims has no debt or preferred stock and its required rate of return is 11%. If Sims has 50 million shares of common stock outstanding, what is the stocks value per share?
- Sora Industries has 62 million outstanding shares, $124 million in debt, $47 million in cash, and the following projected free cash flow for the next four years: a. Suppose Sora's revenue and free cash flow are expected to grow at a 3.6% rate beyond year four. If Sora's weighted average cost of capital is 14.0%, what is the value of Sora stock based on this information? b. Sora's cost of goods sold was assumed to be 67% of sales. If its cost of goods sold is actually 70% of sales, how would the estimate of the stock's value change? c. Return to the assumptions of part (a) and suppose Sora can maintain its cost of goods sold at 67% of sales. However, the firm reduces its selling, general, and administrative expenses from 20% of sales to 16% of sales. What stock price would you estimate now? (Assume no other expenses, except taxes, are affected.) d. Sora's net working capital needs were estimated to be 18% of sales (their current level in year zero). If Sora can reduce this requirement…You expect that Bean Enterprises will have earnings per share of $2 for the coming year. Bean plans to retain all of its earnings for the next three years. For the subsequent two years, the firm plans on retaining 50% of its earnings. It will then retain only 25% of its earnings from that point forward. Retained earnings will be invested in projects with an expected return of 20% per year. If Bean's equity cost of capital is14%, then the price of a share of Bean's stock is closest to:BM expects to pay a dividend of $8 next year and expects these dividends to grow at 3.15% a year. The price of IBM is $67 per share. What is IBM's cost of equity capital?
- Sisters Corporation expects to earn $12 per share next year. The firm's ROE is 15% and its plowback ratio is 60%. Assume the firm's market capitalization rate is 10%. What is the present value of its growth opportunities?You expect that Bean Enterprises will have earnings per share of $2 for the coming year. Bean plans to retain all of its earnings for the next three years. For the subsequent two years, the firm plans on retaining 50% of its earnings. It will then retain only 25% of its earnings from that point forward. Retained earnings will be invested in projects with an expected return of 20% per year. If Bean's equity cost of capital is 14%, then the price of a share of Bean's stock is closest to: A. $12.08 B. $32.21 C. $20.13 D. $8.05A 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).
- 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)The Wei Corporation expects next year's net income to be $10 million. The firm is currently financed with 40% debt. Wei has $12 million of profitable investment opportunities, and it wishes to maintain its existing debt ratio. According to the residual distribution model (assuming all payments are in the form of dividends), how large should Wei's dividend payout ratio be next year? Round your answer to two decimal places.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.
