A firm has 120,000 shares of stock outstanding, a sustainable rate of growth of 3.8%, and $648,200 in next year's free cash flow. What value would you place on a share of this firm's stock if you require a 14% rate of return

Question

01-01-2021
Business

Answered

Discover the answers you need at Westonci.ca, a dynamic Q&A platform where knowledge is shared freely by a community of experts. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

A firm has 120,000 shares of stock outstanding, a sustainable rate of growth of 3.8%, and $648,200 in next year's free cash flow. What value would you place on a share of this firm's stock if you require a 14% rate of return

Sagot :

We appreciate your visit. Hopefully, the answers you found were beneficial. Don't hesitate to come back for more information. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.

Happiness lies not in the mere possession of money; it lies in the joy of achievement, in the thrill of creative effort. The joy and moral stimulation of work n

Choose the best word or phrase to complete each sentence from the drop-down menu.1. Congress can't make laws that say something is illegal after it's already be

Nicholas has some cans at home to donate to the soup kitchen, but he decides to start a can drive at his school to see if other students will help. The table re

Who was the first leader of an independent Dominican Republic?A. José MartíB. Toussaint L'OuvertureC. Juan Pablo Duarte y DíezD. Jean-Jacques Dessalines

Warm-Up: Understanding the Recent History of IranPlace the events related to the Iranian Revolution in chronological order:1. The shah developed Western policie

Select the correct answer.Which of the following is not a primary cause of eroding rock?A. Moving waterB. Gusting windC. Animal habitationD. Gravity

Fill in the blanks with the correct responses.1. The Stamp Act affixed a tax to all newspapers, broadsides, pamphlets, licenses, leases, or other legal document

What property provides for the definition of [tex]$x^{\frac{a}{b}}[tex]$[/tex] as [tex]$[/tex]\sqrt[b]{x^a}$[/tex]?A. Power of a Power Property B. Product of P

Which formula can be used to sum the first $ n $ terms of a geometric sequence?A. $ S_n = a_1 \left(\frac{1-r}{1-r^n}\right) $B. \( S_n = a_1 \left(\frac{1-

hi guys i was wondering what is angle 5 ?

topeadeniran2 topeadeniran2 · Answer 1 · 2021-01-02T19:24:29-05:00

topeadeniran2 topeadeniran2

02-01-2021

Answer: $52.96

Explanation:

Based on the information given in the question, the value that should be placed on a share of this firm's stock if a 14% rate of return is required would be:

= [648200/(14%-3.8%)]/120000

= (648200/10.2%)/ 120000

= $52.96

Answer Link

Sagot :

Other Questions