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Company has the following cash flow stream. CF1 = 313 CF2 = 662 CF3 = 813 CF4 = 989 Cash flow is expected to be
Company has the following cash flow stream. CF1 = 313 CF2 = 662 CF3 = 813 CF4 = 989 Cash flow is expected to be constant after year 4, with a growth rate of 4%. The WACC is 10%. In addition, the company has 39 millions in cash, and 36 millions debt, with 55 millions shares outstanding. What is the stock price, PO, today? (Hint: The answer in my version is 566.44 - This is the format. Do no put $ or % signs, or extra decimals. My answer is 566.44 - That is the format for Blackboard) Add your answer Question 6 33.34 Points $33.43 per share is the current price for Foster Farms' stock. The dividend is projected to increase at a constant rate of 5.33% per year. The required rate of return on the stock, rs, is 9.00%. What is the stock's expected price 7 years from today? (Hint: The answer for my version is 56.55 - This is the format) Add your answer A share of Lash Inc.'s common stock just paid a dividend of $1.02. If the expected long-run growth rate for this stock is 5%, and if investors' required rate of return is 12%, what is the stock price? (Hint: The answer for my version is 78.55 - This is the format) Add your answer Question 4 33.34 Points Company has the following cash flow stream. CF1 = 395 CF2 = 601 CF3 = 951 CF4 = 962 Cash flow is expected to be constant after year 4, with a growth rate of 4%. If the WACC is 10%, what is the Value of Operations (Firm Value) - Vopo today? (Hint: The answer in my version is 14,370.44 - This is the format. Do no put $ or % signs, or extra decimals. My answer is 14,370.44 - That is the format for Blackboard) Add your
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