finance

posted by .

Smith Technologies is expected to generate $125 million in free cash flow next year, and FCF is expected to grow at a constant rate of 3% per year indefinitely. Smith has no debt or preferred stock, and its WACC is 14%. If Smith has 45 million shares of stock outstanding, what is the stock's value per share?

  • finance -

    2.6
    /
    5.63

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Accounting

    Appalachian Register, Inc. (ARI) has current sales of $50 million. Sales are expected to grow to $75 Million next year. ARI currently has accounts receivable of $10 million, inventories of $15 million and net fixed assets of $20 million. …
  2. Finance

    Faulkner Corporation expects to pay an end-of-year dividend, D1, of $1.50 per share. For the next two years the dividend is expected to grow by 25 percent per year, after which time the dividend is expected to grow at a constant rate …
  3. Finance

    Preferred stock question. I need help with part b. A share of preferred stock of MXT Ltd. is expected to pay $1.5 per quarter into indefinite future. The current annual expected rate of return (k) is 12%. Suppose that an investor buys …
  4. Finance

    Preferred stock question. I need help with part b. A share of preferred stock of MXT Ltd. is expected to pay $1.5 per quarter into indefinite future. The current annual expected rate of return (k) is 12%. Suppose that an investor buys …
  5. Finance ( PLEASE HELP)

    You have been assigned the task of using the corparate ,or free cash flow , model to estimate Petry's Corporation intrinsic value. the firm WACC is 10.00% , its end of year cash flow ( FCF)IS EXPECTED TO BE 90.0 MILLION, THE FCFs are …
  6. Investing ( pease help)

    You have been assigned the task of using the corparate ,or free cash flow , model to estimate Petry's Corporation intrinsic value. the firm WACC is 10.00% , its end of year cash flow ( FCF)IS EXPECTED TO BE 90.0 MILLION, THE FCFs are …
  7. STOCKS & BONDS

    Barrett Industries invests a large sum of money in R & D; as a result, it retains and reinvests all of its earnings. In other words, Barrett does not pay any dividends and it has no plans to pay dividends in the near future. A major …
  8. Finance

    Teddy Company paid a $3.50 dividend this year (D0 = $3.50). Next year the company expects to pay a $4.00 dividend (D1 = $4.00). The stock's dividend is expected to grow at a rate of 15 percent a year until three years from now (t = …
  9. Finance

    To finanance a purchase a company will sell 10 year bonds paying 6.6% per year at the market price of $1062. Preferred stock paying a $2.05 dividend can be sold for 25.93. Common stock is cirrently seeling for 54.29 per share and the …
  10. Finance

    A company is planning to open 100 new outlets that are expected to generate, in total, $15 million in free cash flows per year, with a growth rate of 3% in perpetuity. If the company’s WACC is 10%, what is the NPV of this expansion?

More Similar Questions