Question
A business just paid a dividend of $1.15 per share and that dividend is expected to grow at a constant rate of 1.15% per year
A business just paid a dividend of $1.15 per share and that dividend is expected to grow at a constant rate of 1.15% per year in the future. The company's beta is 1.15, the market return is 11.5%, and the risk-free rate is 1.15%. What is the current stock price?
Based on the FCF valuation model, the value of Flagstaff Inc.'s operations is $900 million. The company's balance sheet shows $90 million in short-term investments, $30 million in notes payable, $160 million in long-term debt, and $9 million in preferred stock. If it has 90 million shares of common stock outstanding, what is the best estimate of the stock's price per share?
Use the following information to compute the AFN.
Last year's sales = S0 $6,000 Last year's A/P $300 Sales growth rate = g 3% Last year's N/P $30 Last year's total assets = A0* $6,000 Last year's accruals $30 Last year's profit margin = PM 13.00% Target payout ratio 30%.
A company reported $750,000 of sales, 70% of operating costs other than depreciation, and $5,500 of depreciation. It had $75,000 of bonds that carry a 5.5% interest rate, and its tax rate was 25%. How much was its net cash flow?
Using the following Financial Statements , apply the five steps to FCF to calculate the 2019 FCF, and compute the 2019 ROIC, OP, CR, MVA, and EVA. You can use the sheet to perform the calculations but you must display the formulas used for the calculations.
Company Name Closing Date Previous Closing Date FINANCIAL STATEMENTS Zebra Corp 12/31/2019 12/31/2018 Zebra Corp Balance Sheet as of December 31, 2019 and 2018 (in millions of dollars) Zebra Corp Income Statement for the Years Ending December 31, 2 (in millions of dollars) 12/31/2019 12/31/2018 ASSETS 2019 Assets Current Assets: Cash and equivalents Short-term investments Accounts Receivable Inventory Total $ $ $ $ 3.00 $ 1,380.00 450.00 $ 300.00 $ 100.00 70.00 920.00 245.00 100.00 65.00 50.00 460.00 2018 $ 4,400.00 $ 4,000.00 $ 2,772.00 $ 2,600.00 $ 1,628.00 S 1,400.00 20.00 S 20.00 20.00 $ 1,608.00 10.00 $ 12.00 $ 1,598.00 $ 1,368.00 30.00 1,300.00 399.50 S 342.00 $ 1,198.50 $ 1,026.00 539.33 $ 461.70 659.18 $ 564.30 Net Sales Expenses (excl. depr./amortz.) EBITDA Depreciation and amortization EBIT (operating income) Less: Interest EBT Taxes NET INCOME Less: Common Stock Dividends Addition to Retained Earnings Fixed Assets: Gross plant and equipment Accumulated depreciation Net plant and equipment Total assets $ 1,349.30 $1,349.30 $ 100.00 $ 80.00 $ 1,249.30 $ 1,269.30 $ 2,169.30 $1,729.30 Per share data Common shares (millions) Market Earnings per share (EPS) Dividends per share Book value per share $ $ 10 10 234.50 S 134.00 119.85 $ 102.60 53.935 46.17 177.35 $ 111.43 12/31/2019 12/31/2018 LIABILITIES & EQUITY S Liabilities and Equity Current liabilities: Accounts payable Accruals Notes payable Total Additional data Tax Rate WACC 25.00% 8.0% 25.00% 8.0% $ $ $ 164.83$ 95.00 26.00 $ 35.00 50.00 $ 200.00 240.83 $ 330.00 Long-term bonds Total Liabilites Common stock (20M shares) Retained Earnings Total Equity Total Liabilities and Equity $ 155.00 $ 285.00 $ 395.83 $ 615.00 $ 150.00 $ 150.00 $ 1,623.48$ 964.30 $ 1,773.48 $ 1,114.30 $ 2,169.30 $ 1,729.30Step by Step Solution
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