What is durbin value of operations

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Durbin Inc. has never paid a dividend, and it is not known when the company will pay one. Its current free cash flow is $150,000, and this FCF is expected to grow at a constant 6% rate. The weighted average cost of capital is: WACC = 10%. Durbin currently holds $450,000 in non-operating marketable securities. Its long-term debt is $1,200,000 and it has $500,000 in preferred stock. Durbin has 20,000 shares of stock outstanding.

a) What is Durbin's value of operations.

b) What is the company's total value.

c) What is the intrinsic value of its common equity.

d) What is the intrinsic per share stock value.

Reference no: EM132507383

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