Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Zenix is a drone manufacturer. It currently in 2021) has $52 million of debt and 300 million out-standing shares. It also has $90 million in
Zenix is a drone manufacturer. It currently in 2021) has $52 million of debt and 300 million out-standing shares. It also has $90 million in cash. Zenix's free cash flows (FCF) for the next 3 years (i.e., for 2022, 2023 and 2024) are expected to be $54 million, $66 million and $72 million respectively. Thereafter, the FCF are expected to grow at the constant rate of 6% per year for the foreseeable future. Zenix has a weighted average cost of capital of 14%. Zenix's current price per share is: a) $5.52 b) $6.64 c) $4.26 d) $4.82 e) $4.68
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started