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Wibur and Onvile are brothers. Theyre both serious investors, but they have different approaches to valuing stocks. Wibur, the older brother, lloss to use the

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Wibur and Onvile are brothers. Theyre both serious investors, but they have different approaches to valuing stocks. Wibur, the older brother, lloss to use the divisond valuation model. Owle prefers the tree cash fiow to equity valuation model. As it tums out, right now, both of them are looking at the same stock-Wright First Aarodynmaics, Inc. (WFA). The company has been iatod on the Nrese for over 50 years and is widely regarded as a mature, rock-solid, dividend-payhy stock. The brothers have gathered the following information about WFA stock: Cumert dividend (D5)=$2. 00/ishare Cartent free cash fow (FCF0)=$1.0 millioa Expected growth rate of dividends and cash flows (g)=6% Recuired rate of return ()=11% Shares outstanding e600.000 shares How would Wibur and Orvile each value this stock? The slock price from Wiburs valuation is ! (Round to the nearest cent.)

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