New Stock Bock Problem Wale-Through Check My Work Rynum and Champhan Inc. (RBC), a small jewery manufacture has been successful and has enjoyed a positive growth trend. Now A&C planning to go public with an lue of common shack, and to the problem of setting an appropriate price for the stock. The company and invement tanke beleve that the proper procedure to conduct a skin and reveral mifime with publicly traded common stock and tomato. Several dry manufacturers are really similar to BSC with respect to product ms, composition, and debt/equity proportions. Of these compers Abercrombe Jews and Gunter mot slet When analyding the flowing that the mount year has been resonably "home" in the that it was nother pecially good for specially bad int of skov, sarrings, and from talados AMEX and unter on the NYSE, while BSC will be traded in the dam Company data Shares outstanding Price per chase Caring Froch flow as Back we per Total Abercrombe 4 milion Gunter 9 $33.00 $54.00 200,000 M $2.20 $3.13 $2.00 $1.53 $2.34 $14.00 $9 $33 45301 $257 mill 55 $19.00 $11.5 mellan 52m T BBC backstyled nation with only 500,000 shares oblanding. Free cash flows have been low and in some yours repetive due to BBC'S high saks growth rates, but to person posto and free cash flow should increase. BSC potes the wing fresh flower 3 years 2 4 5 Yer FCF 1 3 $1,000,000 $1,050,000 $1,200,000 $1,329,000 $1,462,000 After Year 5, free cash flow growth will be stable at 7% per year. Currently, Chatto ron-peting ass, and box AC 12% sing the free cash flow valuation model, ntimate MC Intrinsic value of culty and intrinsic per share price. Do not round intermediate stone. Round your answers for the use of equity to the reeeet dollar and for the value of equity per share to the netcart. Vo Per share of equity 19361189.2 38.72 3. Caldest to total assets, PF, market to book, P/FCF, and ROF for Abercrombe, Gunter, and RBC. For calculations that require a pries for RC, use the per share price you obtained with the corporate valuation model in art. Do not round intermediate calculations. Round your answers to two decimal plac D/A BE MarketBook PYFICE Abercrombe Gunter 26% 10% * * c. Using Abercrombex and Gunter's PIC, Market Book, and Price/Cretio, calculate the range of price for Cock that would be consistent with these rate. For example, if you multiply Carings per share by Abe's P/E ratio you pet price. What range of prices do you get? Do not round intermediate culation. Round your rower to the nearest cent The range of pries from $ Ows How does this compare with the price you get using the corporate valuation model? The price attained with the corporate wakion model V this range of prices. Hide Feedback Incorrect Ty Car My Work