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CORPORATE VALUATION Scampini Technologies is expected to generate $150 million in free cash flow next year, and FCF is expected to grow at a constant
CORPORATE VALUATION Scampini Technologies is expected to generate $150 million in free cash flow next year, and FCF is expected to grow at a constant rate of 4% per year indefinitely. Scampini has no debt or preferred stock, and its WACC is 13%. If Scampini has 65 million shares of stock outstanding, what is the stock's value per share? Round your answer to two decimal places. Each share of common stock is worth $ according to the corporate valuation model. CONSTANT GROWTH VALUATION Holtzman Clothiers's stock currently sells for $32 a share. It just paid a dividend of $3.75 a share (i.e., DO = $3.75). The dividend is expected to grow at a constant rate of 10% a year. a. What stock price is expected 1 year from now? Round your answer to two decimal places. $ b. What is the required rate of return? Round your answer to two decimal places. Do not round your intermediate calculations. %
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