Attempts Keep the Highest / 1 10. Problem 9.20 (Corporate Value Model) eBook Assume that today is December 31, 2019, and that the following information applies to Abner Airlines: After-tax operating income (EBIT(1 - T)] for 2020 is expected to be $400 million. The depreciation expense for 2020 is expected to be $50 million. The capital expenditures for 2020 are expected to be $200 million. No change is expected in net operating working capital. The free cash flow is expected to grow at a constant rate of 7% per year. The required return on equity is 14%. The WACC is 10%. The firm has $197 million of non-operating assets. The market value of the company's debt is $5.663 billion. 120 million shares of stock are outstanding. Using the corporate valuation model approach, what should be the company's stock price today? Do not round intermediate calculations. Round your answer to the nearest cent. $ eBook Problem Walk-Through Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Computech to begin paying dividends, beginning with a dividend of $2.00 coming 3 years from today. The dividend should grow rapidly - at a rate of 44% per year - during Years 4 and 5, but after Year 5, growth should be a constant 9% per year. If the required return on Computech is 15%, what is the value of the stock today? Do not round intermediate calculations. Round your answer to the nearest cent. $