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Okay so my answers are: 1. 17.89 2. 23.4575 (I'm getting 22.89 sometimes) 3. 15.24 4. 20.0076 5. 1.50 I am very unsure of my
Okay so my answers are:
1. 17.89
2. 23.4575 (I'm getting 22.89 sometimes)
3. 15.24
4. 20.0076
5. 1.50
I am very unsure of my answers. Please help and show the equation if can, I added the formulas on the bottom. Thank you so much.
1. James, Inc. Required return of stockholders = 12.0% Just paid a Dividend of $3.00 Growth rate of dividend = 5.0% What is the stock price of James? . 2. Jill, Inc. Dividends: do = $2.00, di = $2.15, dy = $2.30, dz = $2.50 From d, onwards, dividend grows at a 4.0% rate. Required return for stock=14.0% What is the stock price of Jill today? . FCF . 3. Jenny, Inc. has the following data available: = $7,700 The FCF remains constant over the future years, i.e. no growth WACC = 11.0%, L.T. Debt = $13,750 # of Common Stocks outstanding: 4,500 Compute the Stock price of Jenny . 4. . . John, Inc. has following data available: FCF = 708 g of FCF = 3.0%, WACC = 12.0%, S.T. Investments = $1,745, L.T. Debt = $2,845 # of Common Stocks outstanding: 350 Compute the Stock price of John. . . 5. Joann, Inc. FCF1 = 23.50, FCF2 = 24.50, FCF3 = 25.00 From FCF, onwards, FCF grows at a 6.0% constant rate. WACC = 13.0% L.T. Debt Outstanding: $69.69 # of Common Stock outstanding: 167 What is the price of stock Joann? . . [For Formulas: Please Turn Over (PTO)] Formulas FCF 21(1+WACC) Vopo FCF (WACC-CL) V = FCF: WACC op,0 FCF1 = FCFox (1 + g) VTotal = Voperations + S.T. Investments Po = V En equity D P. D to f = +8 PO d = do x (1 + g)Step by Step Solution
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