9-5 to 9-6

cial Assets 9-5 CORPORATE VALUATION Scampini Technologies is expected to generate $25 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, its WACC is 10%, and it has zero non-operating assets. If Scampini has 40 million shares of stock outstanding, what is the stock's value per share? 9-6 PREFERRED STOCK VALUATION Farley Inc. has perpetual preferred stock outstanding that sells for $30 a share and pays a dividend of $2.75 at the end of each year. What is the required rate of return