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This is the additional payment for the FIN question #2. Thanks for the help According to the value-based management model, what is the stock price
This is the additional payment for the FIN question #2. Thanks for the help
According to the value-based management model, what is the stock price per share given the following data? Year 1 Revenue 700.00 Other income 25.00 Fixed costs 90.00 Variable costs 280.00 Additional investment in NWC 3.00 Additional investment in operating long-term assets 80.00 Depreciation 75.00 Tax rate 0.40 The free cash flow is expected to grow at 8% from year 1 to year 5 and 6% after year 5 to infinity. WACCcomp = 20%. Market value of the firm: Price per share Number of shares Long-term debt Market value 700.00 Preferred stock 7.00 10 70.00 Common stock, equity 15.00 100 1,500.00 Total Market value of non-operating short-term assets=50 Market value of non-operating long-term assets=80 Select one: a. $8.54 b. $9.97 c. $7.22 d. $5.68 e. $6.90 2,270.00Step by Step Solution
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