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Wilbur and Orville are brothers. They're both serious investors, but they have different approaches to valuing stocks. Wilbur, the older brother, likes to use valuation
Wilbur and Orville are brothers. They're both serious investors, but they have different approaches to valuing stocks. Wilbur, the older brother, likes to use valuation model. Orville prefers the free cash flow to equity valuation model. As it turns out, right now, both of them are looking at the same stockWrigh Aerodynmaics, Inc. (WFA). The company has been listed on the NYSE for over 50 years and is widely regarded as a mature, rock-solid, dividend paying brothers have gathered the following information about WFA's stock Current dividend (D.) = $2.60/share Current free cash flow (FCF) = $1.5 million Expected growth rate of dividends and cash flows (9) = 6% Required rate of return (1) = 15% Shares outstanding = 500,000 shares How would Wilbur and Orville each value this stock? The stock price from Wilbur's valuation is $. (Round to the nearest cent.) The stock price from Orville's valuation is $ ((Round to the nearest cent.)
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