What should be the price per share for company

Assignment Help Risk Management

Reference no: EM131947419

Assume a corporation is expecting the following cash flows in the future: $-6 million in year 1, $9 million in year 2, $24 million in year 3. After year 3, the cash flows are expected to grow at a rate of 5% forever. The discount rate is 10%, the firm has debt totaling $50 million, and 8 million shares outstanding. What should be the price per share for this company?

Reference no: EM131947419

Questions Cloud

Domestic shortage or surplus : Suppose for the soybean oil market in costa rica the demand equation is P=20-0.4QD and the supply demand is P=8=0.6QS the price for the oil is $13

What is the monopolist prot : At this output, the average total cost is $15. What is the monopolist's prot?

Expected monetary value as your decision making technique : Propose a business decision in which you intend to use Expected Monetary Value (EMV) as your decision making technique.

Former senator ron paul being the most vocal : Some economists and political leaders (Former Senator Ron Paul being the most vocal) argue that the Federal Reserve has too much control

What should be the price per share for company : Assume a corporation is expecting the following cash flows in the future. What should be the price per share for this company?

Free trade can often negatively alter the domestic job : Free trade can often negatively alter the domestic job market, obviously this is an unintended consequence, is there anything that can be done to limit

What talents or qualities will you not live without : Journal Entry 2: When selecting someone to join your team, what talents or qualities will you not live without? Analyze the main reasons why you believe.

Performance with respect to industry peers : What benchmarking comparisons say about company performance with respect to industry peers?

Describe the competency approach : They have not heard of the competency approach. Make recommendations based on what you have learned in your research and MSHRM program.

User Account

All Pages