What is the intrinsic value of equity

Assignment Help Finance Basics
Reference no: EM13283461

A privately held company is owned by a family, 10 millions hares of stock. Free Cash Flow of this company is $20 million, its WACC is 12%, and FCF is expected to grow at a constant annual rate of 7%. The company has holdings in marketable securities of $90 million. It is financed with $200 million of debt, $250 million of book common quity. Please who work so I can see how you came up with the answer. Really looking to understand more so then getting an answer.

1. What is the value of operations?
2. What is the total coporate Value?
3. What is the intrinsic value of equity?
4. What is the intrinsic stock price per share?
5. What would be a fair offer price (per share) to this company? Explain.

 

Reference no: EM13283461

Questions Cloud

Determine the second order partial differential equation : (a) If E=Exax andH=Hyay, begin with Maxwell's equations anddetermine the second order partial differential equation that Ex must satisfy. (b) Show that Ex=E0 cos (ωt-βz) isa solution of that equation for a particular value of β.
Chris’s promise : Chris promises Dina $40,000 if she graduates from Eagle College. Dina enrolls in Eagle, attends full-time for four years, and graduates. When Dina asks Chris for $40,000, Chris says, “I don’t remember promising you $40,000.
Find the necessary capacitance per phase induction motor : A 10kW, 230V, 50 Hz, three-phase induction motor has full-loadefficiency of 86%, and power factor of 88%. It is supplied by a three-core cable 100mlong, having conductors of cross sectional area 16 mm^2 andresistivity 17.2nΩ m.
Conflicting self-interests of these players : Who are the major players in the US health service system? What are the positive and negative effects of the often conflicting self-interests of these players?
What is the intrinsic value of equity : Please who work so I can see how you came up with the answer. Really looking to understand more so then getting an answer.
Find the voltage vab from the top to the bottom surface : Two infinite sheets of charge lie parallel to each other, separatedby a distance d. The upper and lower sheets have surfacecharge densities ρsa andρsb[C/m2], respectively. find the voltage Vab from the top to the bottom surface.
In the chemical vapor deposition of silane : In the chemical vapor deposition of silane (SiH4) on a silicon wafer, a process gas stream rich in an inert nitrogen (N2) carrier gas has the following composition:
Find the voltage vab between points pa and pb : If point charges of value +2[nC] are located at the pointsP1(2,2,-1)[m]and P2(1,-2,1)[m],respectively, find the voltage Vab betweenpoints Pa(2,3,1)[m] and Pb(-1,2,2)[m] by using superposition principle and the potential expression for point charge..
What is macleod weighted average cost of captial : The corporate tax rate is 30%, and the target (or optimal) capital structure is 25% debt, 10% preferred stock, and 65% common stock. What is MacLeod's weighted average cost of captial.

Reviews

Write a Review

Finance Basics Questions & Answers

  Finance based decision making question

PH Toy Corporation is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $30 and PH Toy would sell it for $65

  What is the bonds current market price

callaghan Motors' bonds have 10 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon interest rate is 8%, and the yield to maturityis 9%. What is the bond's current market price?

  How mergers and acquisitions affect companies

Recognize two firms with similar problems from different countries. Conduct comparative analysis of the firms. Examine political, social, ethical and legal differences and their impact on management decision making

  Find the interest rate parity theorem

The one-year United State nominal interest rate is 4%. The one-year UK nominal interest rate is 2 percent. The indirect spot rate is currently 0.5350 Pounds per dollar.

  Find initial offering price

What would the initial offering price for the following bonds (suppose semiannual compounding)?

  Correlation of the project cash flows

Corporation planning two potential projects, X and Y. In assessing the projects' risks, the corporation estimated the beta of each project versus both the company's other assets and the stock market,

  Computation of dps, retained earnings and eps

Computation of DPS, retained earnings, EPS and face value of the bond and what was the dividend yield

  What is their present value to you

What is their present value to you? Round your answer to the nearest cent.

  What is the companys after-tax return on the preferred

Your corporation has a marginal tax rate of 35% and has purchased preferred stock in another company. The before-tax dividend yield on the preferred stock is 12%. What is the company's after-tax return on the preferred, assuming a 70% dividend exc..

  Determine the different types of risk

Determine the different types of risk? How would you differentiate a typical risk and a corporate risk? Which type of risk has the most impact on a health benefits company that provides health, life, accident, disability,

  Major types of foreign exchange risks

What are the major types of foreign exchange risks? How are these risks hedged or mitigated? What benefits do firms gain from hedging activities?

  What is the portfolio weight of stock a

A portfolio has 70 shares of Stock A that sell for $39 per share and 110 shares of Stock B that sell for $33 per share.

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