Reference no: EM131881772
Scampini Technologies is expected to generate $125 million in free cash flow next year, and FCF is expected to grow at a constant rate of 8% per year indefinitely. Scampini has no debt or preferred stock, and its WACC is 11%. If Scampini has 55 million shares of stock outstanding, what is the stock's value per share? Round your answer to two decimal places.
a. A stock is expected to pay a dividend of $1.50 at the end of the year (i.e., D1 = $1.50), and it should continue to grow at a constant rate of 5% a year. If its required return is 13%, what is the stock's expected price 5 years from today? Round your answer to two decimal places. Do not round your intermediate calculations.
b. You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $1.75 a share at the end of the year (D1 = $1.75) and has a beta of 0.9. The risk-free rate is 4.3%, and the market risk premium is 5.0%. Justus currently sells for $26.00 a share, and its dividend is expected to grow at some constant rate, g. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years? (That is, what is ?) Round your answer to two decimal places. Do not round your intermediate calculations.
c.A stock is expected to pay a dividend of $1.50 at the end of the year (i.e., D1 = $1.50), and it should continue to grow at a constant rate of 5% a year. If its required return is 13%, what is the stock's expected price 5 years from today? Round your answer to two decimal places. Do not round your intermediate calculations.
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Perform sensitivity analysis on key outputs in relation
: What are the decision alternatives? Develop the business model for each alternative. (Recall the input table and the linking of cash flow to input table.)
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What is the accounts receivable balance
: The Inventory Conversion period is 40 days, the Accounts Payable Deferral Period is 20 days, and the Cash Conversion Cycle is 30 days.
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What price will your bond sell for
: What price will your bond sell for? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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Prepare appropriate journal entries related to investment
: Prepare all appropriate journal entries related to the investment during 2016, assuming Runyan accounts for this investment by the equity method.
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What is the stocks expected price five years from today
: Scampini Technologies is expected to generate $125 million in free cash flow next year, &FCF is expected to grow at a constant rate of 8% per year indefinitely.
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How much would be taxed to ds estate because of the power
: The value of the trust corpus at all times was $200,000. At D's death, how much would be taxed to D's estate because of the power?
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What is the total future dollars and the total dollar return
: What is the total future dollars and the total dollar return that should be generated from this bond if it is to yield 8%?
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By how much would the bonds price change
: If interest rates surprisingly increase by 0.5 percent, by how much would the bond's price change?
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Prepare the journal entries required by runyan
: Prepare the journal entries required by Runyan, assuming that the 10 million shares represent a 10% interest in net assets of Lavery rather than a 30% interest.
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