Estimated per-share price of common stock

Assignment Help Financial Management
Reference no: EM13924703

An analyst is estimating the intrinsic value Harkleroad Technologies' stock. Harkleroad's free cash flow is expected to be $30 million this year, and grow at a constant rate of 7.5 % a year. The company's WACC is 11%. Harkleroad has $225 million of long-term debt and preferred stock, and 35 million outstanding shares of common stock. What is the estimated per-share price of Harkleroad Technologies' common stock?

Reference no: EM13924703

Questions Cloud

Evaluating implications of the internal environment : Analysing and Evaluating Implications of the Internal Environment - Examine and critically review the peer and faculty feedback that was offered during the Shared Activity.
Effective annual interest rate on this lending arrangement : Come and Go Bank offers your firm a discount interest loan with an interest rate of 10 percent for up to $26 million, and in addition requires you to maintain a 2 percent compensating balance against the face amount borrowed. Required: What is the ef..
Explain advantage of discounted cash flow method of analysis : Use the Internet and/or Ashford University Library and/or Mergent Online to look up and describe the cash payback method. Explain the advantage of a discounted cash flow method of analysis.
Accurate information to marketing decision makers : 1) ________ consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.
Estimated per-share price of common stock : An analyst is estimating the intrinsic value Harkleroad Technologies' stock. Harkleroad's free cash flow is expected to be $30 million this year, and grow at a constant rate of 7.5 % a year. The company's WACC is 11%. Harkleroad has $225 million of l..
Cash proceeds from bond issues under the following terms : Snow, Inc., issued $80,000 of four year, 8 percent bonds at 96.
Data concerning the costs incurred : Rooter's Cleaning Services provided data concerning the costs incurred to clean hotel rooms for which hotel customers pay $150 per night. Data for the past 7 months are as follows:
Is there a significant interaction effect : All homework "Results sections" must follow the example given in the SPSS tutorials and the Course Content document "Writing Results of Statistical Tests in APA Format" (note: you do not have to refer to a figure).
Bank offers a loan on the terms : Suppose that a bank offers a loan on the following terms:

Reviews

Write a Review

 

Financial Management Questions & Answers

  What is the amount of the companys accounts receivable

Essence of Skunk Fragrances, Ltd., sells 5,500 units of its perfume collection each year at a price per unit of $385. All sales are on credit with terms of 3/20, net 40. The discount is taken by 45 percent of the customers. What is the amount of the ..

  Write a 350- to 700-word rebuttal to the article using

locate an article about a controversial subject where the author makesnbspan argument you do not agree with.nbspwrite a

  Find terminal stock price using benchmark PE ratio

In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so, then find the “terminal” stock price using a benchmark PE ratio. What is the target stock price in five years?..

  Yield to maturity remains constant

Chick-Fil-A bonds currently sells for $1,025. They have a 9 year maturity, and 8% annual coupon, and a par value of $1,000. Assume that the yield to maturity remains constant for the next 3 years. What is the price 3 years from today?

  The real risk-free rate of interest

The real risk-free rate of interest is 3%. Inflation is expected to be 2% this year and 4% during the next 2 years. Assume that the maturity risk premium is zero. What is the yield on 2-yr and 3-yr US Treasury bonds? (Hint: for US Treasury bonds, DRP..

  The new machine will have a zero rate of return

Dave & Co. is replacing a machine because it has worn out. At the end of its 5 year life, the new machine will not affect either sales or operating costs and will not have a salvage value. The new machine will have a zero rate of return. The new mach..

  Determine the yield-to-maturity-high and low market price

Recently the high and low market prices of Canadian Pacific Limited’s debentures (see problem 1) were $790 and $475, respectively. Determine the yield-to-maturity of one of these debentures if it was purchased under the following conditions: At the h..

  Personal automobile policy

Raman Patel has a personal automobile policy (PAP) with coverage of $25,000/$50,000 for bodily injury liability, $25,000 for property damage liability, $5,000 for medical payments, and a $500 deductible for collision insurance. Raman loses control an..

  The appropriate cost of capital

Hathaway, Inc., a resort company, is refurbishing one of its hotels at a cost of $7,424,321. Management expects that this will lead to additional cash flows of $1,768,100 for the next six years. What is the IRR of this project? If the appropriate cos..

  Approaching the same events from two different angles

Find two consecutive scenes in Shakespeare's Henry V that seem to “speak” to each other. This can be done through the two scenes paralleling or contrasting one another, or approaching the same events from two different angles.

  Growth in property-plant and equipment

Growth in property, plant and equipment is _______________ related to the range and level of services expected to be provided in the planning period.

  Considering both federal and state personal taxes

George and Margaret Wealthy are in the 42 percent tax bracket, considering both federal and state personal taxes. Norman Briggs, then CEO of Community General Hospital, has been aggressively pursuing the couple to contribute $400 thousand to the hosp..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd