What is the intrinsic stock price after the repurchase

Assignment Help Accounting Basics
Reference no: EM132479769

Question - Bayani Bakery's most recent FCF was $48 million; the FCF is expected to grow at a constant rate of 6%. The firm's WACC is 11% and it has 15 million shares of common stock outstanding. The firm has $30 million in short-term investments, which it plans to liquidate and distribute to common shareholders via a stock repurchase; the firm has no other non-operating assets. It has $366 million in debt and $60 million in preferred stock.

Required -

a) What is the value of operations?

b) Immediately prior to the repurchase, what is the intrinsic value of equity?

c) Immediately prior to the repurchase, what is the intrinsic stock price?

d) How many shares will be repurchased, assuming the use of all short-term investments?

e) What is the intrinsic stock price after the repurchase?

Reference no: EM132479769

Explain why the amounts for premium-discount recorded

Buckman Corporation issued bonds with a face value of $800,000 on April 1, 2008. The bonds pay interest semi-annually at a coupon rate of 10% per year and the due date of th

Determine the final lower-of-cost-or-market inventory value

Determine the final lower-of-cost-or-market inventory value for each item. Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method (b) Loss method.

International accounting issues case

It is important for accountants to understand advanced accounting transactions, for this final project, you will complete several advanced accounting transactions related to

Computing amount of gross profit

What is the amount of gross profit? Show calculations. What is the amount of operating income? Show calculations. What is the amount of pretax income?Show calculations

Briefly describes the both search article

Briefly describes each article (attach a copy of each article to your report). Links each article to something stated in your text (textbook Financial Accounting Robert Libby

Problem related to real rate of return

Over the past year, you earned 11.9% overall on your investments. During that period, the inflation rate was 2.3% and the risk-free of risk-free rate of return was 3.2%. Wha

Partnership interest after distribution

(1) inventory with a basis of $15,000 and a fair market value of $13,000, and (2) land with a basis of 5000 and fair market value of $20,000. What are Amy's bases in the lan

Trade deficits and trade surpluses

Many individuals believe that trade deficits are troubling economic condition which points out weakness in economy while trade surpluses are sign of strength and rising prom

Reviews

Write a Review

 
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