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Tech, Inc, a regional technology manufacture plans to roll out a new product to gain market share. This expansion is expected to capture a significant

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Tech, Inc, a regional technology manufacture plans to roll out a new product to gain market share. This expansion is expected to capture a significant share of the market for the next three years. Afterwards, its free cash flows are expected to tapper. Tech, Inc, has just paid a cash dividend of $2.00 and is expected to increase its payout by 25% for the next three years. Afterwards, its dividends are expected to grow at 2%, indefinitely. Tech has a required return of 15%. a. Draw a free cash flows diagram of its dividends. b. What is Tech's intrinsic value c. If the market value to Tech is $30, should it be purchased? Explain A firm has forecasted free cash flows as follows: The firm has $300 mil in short term investments; $400 million in preferred stock, ans $400 million in corporation bonds. There are 10 million shares of common stock outstanding. If the firm has a weighted average cost of capitally of 15%, what is the intrinsic value of the common stock? A firm has forecasted free cash flows as follows: firm has $500 mil in short term investments; $100 million in preferred stock, and $300 million in. There are 20 million shares of common stock outstanding. If the firm has a weighted average cost of 13% what is the intrinsic value of the common stock

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