Question
1) Bank of America has a preferred stock dividend of $3.76. The stock is trading for $62.66. What is the expected return of the preferred
1) Bank of America has a preferred stock dividend of $3.76. The stock is trading for $62.66. What is the expected return of the preferred stock?
2) A company had free cash flows of $370 million last year. Free cash flows are expected to grow at 2.4% per year. The WACC for the firm is 7.1%. They currently have $7.9 billion in debt outstanding, and have 189 million common stock outstanding. The company does not have any preferred stock. What is the estimate of the stock price based on the firm valuation model?
3) A company had free cash flows of $522 million last year. Free cash flows are expected to grow at 3.8% per year. The WACC for the firm is 8.9%. They currently have $6.9 billion in debt outstanding, and have 211 million common stock outstanding. The company has 75 million preferred stock outstanding, that currently trade at $36. What is the estimate of the stock price based on the firm valuation model?
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Remittances And International Development
Authors: Sabith Khan, Daisha Merritt
1st Edition
0367521881, 978-0367521882
