Question
Scampini Technologies is expected to generate $125 million in free cash flow next year, and FCF is expected to grow at a constant rate of
Scampini Technologies is expected to generate $125 million in free cash flow next year, and FCF is expected to grow at a constant rate of 8% per year indefinitely. Scampini has no debt or preferred stock, and its WACC is 15%. If Scampini has 55 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.
Farley Inc. has perpetual preferred stock outstanding that sells for $32.00 a share and pays a dividend of $3.00 at the end of each year. What is the required rate of return? Round your answer to two decimal places.
Weston Corporation just paid a dividend of $3.75 a share (i.e., D0 = $3.75). The dividend is expected to grow 9% a year for the next 3 years and then at 4% a year thereafter. What is the expected dividend per share for each of the next 5 years? Round your answers to two decimal places.
D1 = $ D2 = $ D3 = $ D4 = $ D5 = $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started