Cash reserve and million in debt

Assignment Help Finance Basics
Reference no: EM131757753

Analysts are trying to put a price tag on Company XYZ's stock. XYZ is expected to have Free Cash Flow of $50 million, $75 million respectively at the end of years 1 and 2 and then cease operations. Suppose WACC is 9% and XYZ has $20 million in cash reserve and $30 million in debt. With 5 million shares outstanding, how much is the price per share now?

Reference no: EM131757753

Questions Cloud

Review problem on healthy cereal : Healthy cereal? Researchers collected data on 77 brands of cereal at a local supermarket.25 For each brand, the sugar content (grams per serving).
Discuss what is her basis in the property received : What is the amount of Ellie's dividend income on the distribution. What is her basis in the property received
Million shares outstanding : Suppose WACC is 9% and XYZ has $20 million in cash reserve and $30 million in debt. With 5 million shares outstanding, how much is the price per share now?
How much is a share worth today : College Park Sports has just paid a dividend of $10/share and has announced that it will increase the dividend by $4/share for the next 3 years
Cash reserve and million in debt : Suppose WACC is 9% and XYZ has $20 million in cash reserve and $30 million in debt. With 5 million shares outstanding, how much is the price per share now?
Examines freedom of speech and expression : Examines freedom of speech and expression as they relate to the following two U.S. Supreme Court case decisions
What evidence do you do look at as the investigator : What would you say happened to this victim? What are some options for this scenario? What evidence do you do look at as the investigator?
How much is a share worth today : The firm's required return is 12%. How much is a share worth today?
Prepare a segment margin income statement for shoe shocks : Prepare a segment margin income statement for Shoe Shock's two distribution channels

Reviews

Write a Review

Finance Basics Questions & Answers

  List four concepts two from the video and two from article

List and describe four concepts -- two from the video and two from the article -- that we covered in class that were discussed in detail in the materials.

  Return on total assets

Barnes Corp's total assets at the end of last year were $415,000,000 and its net income after taxes was $17,750,000. What was its return on total assets?

  Why have high inflation rates tended to be associated

Historically, why have high inflation rates tended to be associated with high nominal interest rate?

  Find the principal repaid in the first year

Find the annual payment of the loan of $20,000 with 7% of interest rate per year if the loan is paid off over the next 5 years. Then, find the principal repaid in the first year, and the balance of this loan at the end of the first year. Include f..

  How many may he purchase using a margin brokerage account

Ehud Katz anticipates that the price of Trinity Technology stock will go up. Its current price is $55.50 per share and he has $3,330 to invest. How many shares may he purchase with a cash brokerage account?

  Calculate the correlation matrix for this problem carry out

a) Kahn and Rudd (1995) examined whether historical performance predicts future performance for a sample of mutual funds that included 300 actively managed U.S. domestic equity funds. One approach they used involved calculating each funds' exposure t..

  How many checks would randy have to write

Randy, a student, has $500 to deposit in a new checking account, but Randy knows he will not be able to maintain a minimum balance.- How many checks would Randy have to write each month for the account at South Trust to be the better option?

  Archer daniels midland company is considering buying a new

1.archer daniels midland company is considering buying a new farm that it plans to operate for 10years. the farm will

  Determine the break-even point in units and dollars

Associated Containers Company is planning to manufacture and sell plastic pencil holders. Direct labor and raw materials will be $2.28 per unit.

  As a newly promoted vice president vp your chief executive

as a newly promoted vice president vp your chief executive officer ceo has invited you to participate in this years

  What is donald current ratio

Total Assets ...................................$9,000 Total Liabilities ...........................$45,000 What is Donald’s current ratio?

  Te bonds willbe sold today at a price of 82645 if the

claus amp co. is planning a zero coupon bond issue that hasa par value of 1000 and matures in 2 years. the bonds

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