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Need help asap Portgage Bay Enterprise has $1 million in excess cash, no debt and is expected to have Free Cash Flow of $10 million
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Portgage Bay Enterprise has $1 million in excess cash, no debt and is expected to have Free Cash Flow of $10 million next year, Its Free Cash Flow is then expected to grow at a rate of 3% per year forever. If Portgage's equity cost of capital is 11% and it has 5 million shares outstanding, what should the price of Portgage Bay's stock be? $20.1 $22.3 a. b. $25.2 $27.1 c. d. Suppose furniture manufacturer Herman Miller, Inc., has earnings per share of $1.38. If the average P/E of comparable furniture stocks is 21.3, estimate a value for Herman Miller's stock using the P/E as a valuation multiple. $29.4 a. b. $31.3 $40.5 $43.2 C. d. SLYMN Enterprises has a P/E ratio of 12 and a dividend payout ratio of 60%. If its equity cost of capital is 13 %, what growth rate is its P/E ratio consistent with? 8% a. b. 9% 10% C. d. 11% Fairview, Inc., is an ocean transport company with EBITDA of $50 million, cash $20 million, debt of $100 million, and 10 million shares outstanding. The oce transport industry as a whole has an average EV/EBITDA ratio of 8.5. What is corresponding estimate of its stock price? $21.1 $27.3 a. b Step by Step Solution
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