12.a

b.

c.

d.

Consider the following data: Debt: $30 million; cash: $110 million; Shares outstanding: 50 million; expected FCF in one year: $45 million; Expected FCF in two year: $50 million; future FCF growth rate after 2 years: 5%; WACC: 9.4%. What is the share price today? 11.6 21.6 23.2 24.7 What is the implied stock price of a company that is expecting to make $4 per share in earnings next year, has a required rate of return of 8%, a retention ratio of 50%, and a return on equity of 13%? $66.67 $120 $122.27 $133.33 Analysts predict that Ottawa Toys will pay dividends of $3 per share in year 1, $3.5 per share in year 2, and $3.8 per share in year 3. The firm then expects its dividend to decrease by 5% per year for three years (year 4,5,6). Thereafter the dividends will grow at 6% indefinitely. The required rate of return is 12%. What is the value of the stock today? 29.2 32.7 38.6 43.2 The firm-level FCF of New Media Inc. is estimated to be $9.8 million. The company has 2.1 million shares outstanding. You also now that the average P/FCF multiple for comparable companies is 12.9. Using a relative valuation approach, what is the estimated price of a share of New Media Inc Stock? $60.20 $93.40 $126.40 $175.10