Check My Work (3 remaining) eBook Problem Walk-Through Dantzler Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFS) during the next 3 years, after which FCF is expected to grow at a constant 4% rate. Dantzler's WACC is 13%. Year FCF (5 millions) - $12 $24 $51 a. What is Dantzler's horizon, or continuing, value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3.) Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. Do not round intermediate calculations. Round your answer to two decimal places. million b. What is the firm's market value today? Assume that Dantzler has zero non-operating assets. Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. Do not round intermediate calculations. Round your answer to two decimal places. million c. Suppose Dantzler has $147.40 million of debt and 14 million shares of stock outstanding. What is your estimate of the current price per share? Write out your answer completely. For example, 0.00025 million should be entered as 250. Do not round intermediate calculations. Round your answer to the nearest cent. Dave SOLASI Met of Gracing Question 19 a 20 Check My Work (3 remaining) eBook Carnes Cosmetics Co.'s stock price is $54, and it recently paid a $1.75 dividend. This dividend is expected to grow by 26% for the next 3 years, then grow forever at a constant rate, 9; and r, 16%. At what constant rate is the stock expected to grow after Year 3? Do not round intermediate calculations. Round your answer to two decimal places Save Submit Assignment for Grading stions Problem 9.30 Corporate Value Model) Question 20 of 30 Check My Work (3 remaining) eBook Assume that today is December 31, 2019, and that the following information applies to Abner Airlines: After-tax operating income (EBIT(1 - 1)] for 2020 is expected to be $550 million The depreciation expense for 2020 is expected to be $190 million The capital expenditures for 2020 are expected to be $275 million No change is expected in net operating working capital. The free cash flow is expected to grow at a constant rate of 3% per year. The required return on equity is 16%. The WACC is 11% The firm has $204 million of non-operating assets. The market value of the company's debt is $2.038 billion 270 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. Check My Work (3 remaining)
