ABC Wood Distributors sells construction material throughout the state of Illinois. Because of population growth and a construction boom in recent years, the company has prospered and expects to continue to do well in the near term. The company will pay a $0.75 per share dividend to investors one year from now. Investors believe that ABC Wood Distributors will increase that dividend at 15 % per year for the sub-sequent 5 years before settling down to a long-run dividend growth rate of 3 %. Investors expect an 8 % return on ABC Wood common shares. What is the current selling price of the stock? After careful research, you find the present value of the free cash flows of a firm to be $100 million. The market value of the firm's preferred stock is $15 million, while the market value of the firm's debt is $40 million. If the firm has 2 million shares of stock outstanding, what is the equity value per share? A firm has the following accounts and financial data for 2018: $1.800 500 18 Sales revenue Accounts receivable Interest expense Total operating expenses Accounts payable $3,060 Cost of goods sold Preferred stock dividends 126 Tax rate 600 Number of shares of common stocks outstanding 40% 1,000 240 The firm's earnings available to common stockholders in 2018 is