Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribed

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Global Financial Systems Stability And Risk

Authors: Jon Danielsson

1st Edition

0273774662, 9780273774662

More Books

Students also viewed these Accounting questions

Question

Explain the purposes of managing performance.

Answered: 1 week ago

Question

List 4 methods to evaluate training.

Answered: 1 week ago