Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Scampini Technologies is expected to generate $17.97 million in free cash flow next year, and its FCF is expected to grow at a constant rate

Scampini Technologies is expected to generate $17.97 million in free cash flow next year, and its FCF is expected to grow at a constant rate of 4.4% per year indefinitely. Scampini has no debt or preferred stock, its WACC is 10.2%, and it has zero non operating assets. If Scampini has 29.3 million shares of stock outstanding, what is the market value of the firm? State your answer in millions of dollars.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Institutions Management A Risk Management Approach

Authors: Anthony Saunders, Marcia Cornett, Otgo Erhemjamts

10th Edition

1260013820, 978-1260013825

More Books

Students also viewed these Finance questions

Question

study a bonded warehouse at a container terminal.

Answered: 1 week ago