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Dion Corporation reported earnings per share of $ 2 . 0 2 in 2 0 2 3 , and paid no dividends. These earnings were

Dion Corporation reported earnings per share of $2.02 in 2023, and paid no dividends. These earnings were expected to remain at 50% of revenues, which were $106 million in 2023, and were expected to grow 6% a year from 2024 to 2028 and 4% a year after that. The firm was expected to finance 10% of its capital expenditures and working capital. a. Estimate the expected free cash flow to equity from 2024 to 2028, assuming that capital expenditures and depreciation grow at the same rate as earnings. b.Estimate the terminal price per share (at the end of 2028). Stable firms in this industry have capital expenditures which are 15% of earnings, and maintain working capital at 25% of revenues. c. Estimate the value per share today, based on the FCFE model, assuming 1 million shares outstanding.

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