Stock Repurchase

Bayani Bakery's most recent FCF was $$49$ million; the FCF is expected to grow at a constant rate of $6\%.$ The firm's WACC is $14\%,$ and it has $15$

million shares of common stock outstanding. The firm has $$30$ million in short$-$term investments, which it plans to liquidate and distribute to

common shareholders via a stock repurchase; the firm has no other nonoperating assets. It has $$368$ million in debt and $$63$ million in preferred

stock.

a$.$ What is the value of operations? Enter your answer in millions. For example, an answer of $$1\mathrm{.}23$ million should be entered as $1\mathrm{.}23,$ not

$1,230,000.$ Round your answer to two decimal places.

$

million

b$.$ Immediately prior to the repurchase, what is the intrinsic value of equity? Enter your answer in millions. For example, an answer of $$1\mathrm{.}23$ million

should be entered as $1\mathrm{.}23,$ not $1,230,000.$ Round your answer to two decimal places.

$

million

c$.$ Immediately prior to the repurchase, what is the intrinsic stock price? Round your answer to the nearest cent.

$

per share

d$.$ How many shares will be repurchased? Enter your answer in millions. For example, an answer of $$1\mathrm{.}23$ million should be entered as $1\mathrm{.}23,$ not

$1,230,000.$ Round your answer to two decimal places.

million shares

How many shares will remain after the repurchase? Enter your answer in millions. For example, an answer of $$1\mathrm{.}23$ million should be entered as

$1\mathrm{.}23,$ not $1,230,000.$ Round your answer to two decimal places.

million shares

e$.$ Immediately after the repurchase, what is the intrinsic value of equity? Enter your answer in millions. For example, an answer of $$1\mathrm{.}23$ million

should be entered as $1\mathrm{.}23,$ not $1,230,000.$ Round your answer to two decimal places.

$

million

The intrinsic stock price? Round your answer to the nearest cent.

$

per share