1. Scampini Technologies is expected to generate $175 million in free cash flow next year, and FCF is expected to grow at a constant rate of 4% per year indefinitely. Scampini has no debt or preferred stock, and its WACC is 15%, and it has zero nonoperating assets. If Scampini has 55 million shares of stock outstanding, what is the stock's value per share? Do not round intermediate calculations. Round your answer to the nearest cent.

Each share of common stock is worth $ ______ according to the corporate valuation model.

2. Investors require an 8% rate of return on Mather Company's stock (i.e., r_s = 8%).

a. What is its value if the previous dividend was D₀ = $2.50 and investors expect dividends to grow at a constant annual rate of (1) -3%, (2) 0%, (3) 2%, or (4) 5%? Do not round intermediate calculations. Round your answers to the nearest cent.

(1) $

(2) $

(3) $

(4) $

b. Using data from part a, what would the Gordon (constant growth) model value be if the required rate of return was 8% and the expected growth rate was (1) 8% or (2) 12%? Round your answers to the nearest cent. If the value is undefined, enter N/A.

(1) $

(2) $