What is an estimate of brandtly price per share

Assignment Help Financial Management

Reference no: EM131329783

Corporate valuation Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly does not pay any dividends, and it has no plans to pay dividends in the near future. A major pension fund is interested in purchasing Brandtly's stock. The pension fund manager has estimated Brandtly's free cash flows for the next 4 years as follows: $3 million, $6 million, $8 million, and $15 million. After the fourth year, free cash flow is projected to grow at a constant 3%. Brandtly's WACC is 13%, the market value of its debt and preferred stock totals $44 million, and it has 23 million shares of common stock outstanding. Write out your answers completely. For example, 13 million should be entered as 13,000,000. What is the present value of the free cash flows projected during the next 4 years? Round your answer to the nearest cent. Do not round your intermediate calculations. $ What is the firm's horizon, or continuing, value? Round your answer to the nearest cent. $ What is the firm's total value today? Round your answer to the nearest cent. Do not round your intermediate calculations. $ What is an estimate of Brandtly's price per share? Round your answer to the nearest cent. Do not round your intermediate calculations. $

Reference no: EM131329783

Questions Cloud

How many breaths can the diver take from this tank : How many breaths can the diver take from this tank at a depth of 35 m? Assume that the temperature remains constant.

Separate causation from correlation and economic theory : It is very important that we separate causation from correlation and economic theory allows us to support hypothesis testing with a scientific basis for conclusions. How would you evaluate economic variables and indicators relative to identifying ..

Provide a brief synopsis of the movie : Indicate the movie's title, and provide a brief synopsis of the movie. Analyze the team's values, behavioral norms, and outcomes. Use the socio-cognitive systems learning model to inform your discussion

Showing the equilibrium under free trade in grapes : Assume Canada is a small open economy that imports some of the grapes it consumes. a) Draw a diagram showing the equilibrium under free trade in grapes

What is an estimate of brandtly price per share : Corporate valuation Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly does not pay any dividends, and it has no plans to pay dividends in the near future. What..

What is the owen value of the game : What is the Owen value of this game with this coalition structure? Does the union help the small countries, according to the Owen value?

Calculate and plot the lorenz curve : The Table below gives the income of each of four individuals who are in a region. Calculate and plot the Lorenz curve and calculate the Gini coefficient for this economy.

Discuss about the ethical and socially responsive business : Discuss about the Ethical and Socially Responsive Business.Describe key areas of the selected company's code of conduct that are of significant importance to the business, and explain why.Explain the key steps that the company should take to ensure..

Calculate the mole fraction of xe in the mixture : A 455 cm3 vessel contains a mixture of Ar and Xe. If the mass of the gas mixture is 2.245 g at 25.0°C and the pressure is 760. Torr, calculate the mole fraction of Xe in the mixture.

User Account

All Pages