St Louis Corp. expects free cash flows of $2,000,000, $3,200,000, $4,400,000, $5,800,000, $6,500,000, in years 1,2 3,4, 5, respectively. In addition, it has a continuing value of $20,000,000 at the end of year 5 and a cost of capital of 7%. Assuming year end cash flows and that these are all the cash flows for the company, what is the value of this company?

Perryville Corp. has an enterprise value of $50,000,000, long term debt of $8,000,000, and an under-funded pension obligation of $6,000,000. If it has 1,800,000 shares outstanding (and no shares under option), please compute the intrinsic value per common share.

Assume the same information as the prior problem. In addition, Perryville Corp. has 600,000 shares under option and in the money. Please use the denominator method and assume that all 600,000 options will be exercise (with no proceeds because future grants will offset the proceeds). In addition, Perryville issued an additional 100,000 shares and the $10,000,000 in cash from the sale of shares is added to the $50,000,000 enterprise value for a new enterprise value of $60,000,000. What is the new intrinsic value per common share?

Marsha Corporation is financed as follows: --60,000 bonds with market values of 92% of face value of $1,000. --80,000 shares of preferred stock trading in an active market at $15 per share --1,000,000 shares of common stock trading in an active market at $32 per share --The bonds pay $60 interest payments annually, have a face value of $1,000 and trade in the market at $920 --The preferred stock pays a $2.00 dividend with no growth. --The common stock has a beta of 1.5, the risk-free rate is 3.5%, and the market risk premium is 6%.

Given the information above, what is the weighted average cost of capital for Marsha Corporation?

ABC Corporation just paid a $2.08 dividend and is expected to grow at the following rates year 1 at 6%, year 2 at 8%, year 3 at 10%, year 4 at 12 % , year 5 at 8% and thereafter at 3%, The cost of equity using the capital asset pricing model is 8%. What is the value for ABC Corporation using the dividend discounting model?