1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
leonid [27]
3 years ago
12

Scampini Technologies is expected to generate $25 million in free cash flow next year, and FCF is expected to grow at a constant

rate of 7% per year indefinitely. Scampini has no debt or preferred stock, and its WACC is 13%. If Scampini has 45 million shares of stock outstanding, what is the stock's value per share? Round your answer to two decimal places.Each share of common stock is worth $ , according to the corporate valuation model.
Business
1 answer:
DedPeter [7]3 years ago
8 0

Answer:

$9.26 per stock

Explanation:

using the discounted cash flow model, the value of Scampini Technologies is:

company's value = free cash flow / (required rate of return - growth rate) = $25,000,000 / (13% - 7%) = $25,000,000 / 6% = $416,666,667

since the company does not have any debt, the price of each stock is:

stock price = total value of the company / total outstanding stocks = $416,666,667 / 45 million shares = $9.26 per stock

You might be interested in
. Dolores used to work as a high school teacher for $40,000 per year but quit in order to start her own catering business. To bu
VladimirAG [237]

Answer:

The correct option is B

Explanation:

In order to compute the profit, the accountant consider the Explicit cost so,

Explicit Cost = Borrowed amount × Interest rate + Ingredients amount

                     = $30,000 ×  3% + $25,000

                     = $259,000

Where Revenue is $60,000

Profit = Revenue - Explicit Cost

        = $60,000 - $259,000

        = $34,100

Economic Profit is computed as:

Economic Profit = Total Profit - Implicit Cost

                          = $34,100 - $40,600

                          = - $6,500

where

Implicit Cost = Salary + Interest

                = $40,000 + ($20,000 × 3%)

                =  $40,000 + $600

                = $40,600

Therefore, Louis says profit is $34,100 and Greg says she lost $6,500

5 0
3 years ago
The head of accounting at delores inc. is computing a value that represents the company's financial performance for the previous
Nesterboy [21]
<span> In this scenario, the mean as a measure of central tendency will be least effective as an accurate representation of financial performance.
</span><span>The mean is a measure of central tendency that is the average for a sample.
</span><span>In this specific case the mean is not effective measure because there is a huge difference in the financial performance in the last month compared to the previous months.So the mean would not give the real picture.</span>
5 0
3 years ago
If a seller facing excess demand is unable to raise the price of the good due to a price ceiling, a likely result will be:
Anuta_ua [19.1K]

A likely result will be a decrease in the quality of a product.

The fee ceiling is a state of affairs while the price charged is greater than or less than the equilibrium fee decided with the aid of market forces of demand and deliver. It's been found that higher price ceilings are useless. price ceiling has been discovered to be of extraordinary importance within the residence rent marketplace.

A price ceiling is a legal maximum rate that one will pay for some good or carrier. A government imposes rate ceilings as a good way to preserve the price of some necessary precise or services low-cost. as an example, in 2005 at some stage after Hurricane Katrina, the price of bottled water expanded above $five according to the gallon.

A rate ceiling continues a fee from growing above a sure level (the “ceiling”), even as a fee ground continues a rate from falling underneath a given degree (the “ground”). This phase uses the call for and delivers a framework to research price ceilings. the following section discusses rate flooring.

Learn more about the price ceiling here brainly.com/question/1448982

#SPJ4

3 0
1 year ago
When teams have a high degree of dependence on outsiders, is the best team strategy.
Nataly_w [17]

Probing is the best team strategy.

3 0
2 years ago
Read 2 more answers
When a firm can _____ its capital equipment over a shorter period, it cuts its taxes _____. appreciate; later appreciate; now de
Andre45 [30]

When a firm can depreciate its capital equipment over a shorter period, it cuts its taxes now.

A capital asset's value dropping is referred to as capital depreciation. To determine the recovery cost incurred on fixed assets over the course of their useful lives, assets are depreciated. When the asset reaches the end of its useful life or you need to sell it, this is used as a sinking fund to replace it. Depreciation lowers the taxable income, which lowers the tax burden. Capital assets are listed as an asset on the balance sheet and are depreciated over the course of their useful lives. Businesses typically have to spread out the costs of capital investments over a number of years in accordance with predetermined depreciation schedules.

More about depreciation brainly.com/question/15178885

#SPJ4

8 0
1 year ago
Other questions:
  • Why is research and development an integral part of the designing and producing process of an aerospace product? Select the best
    15·2 answers
  • Stevens Clothing Company has four warehouses spread throughout the country. The company is considering building another warehous
    14·1 answer
  • Activity Cost Pools Estimated Overhead Cost Expected Activity Assembly $ 515,520 52,500 machine-hours Processing orders $ 62,763
    5·1 answer
  • On June 1, 2021, Royal Property Management entered into a one-year contract to oversee leasing and maintenance for an apartment
    9·1 answer
  • Empire Company is a manufacturer of smartphones. Its controller resigned in October 2017.
    12·1 answer
  • The balance sheet for Gelher Company reports the following information on July 1, 2022. GELHER COMPANY Balance Sheet (partial) L
    9·1 answer
  • Jason, a police officer, strongly believes in justice and does not accept bribes from others. According to Kohlberg's stages of
    10·1 answer
  • Jaiden is in 6th grade and plans to attend college. He has created a college preparation plan.
    12·2 answers
  • What makes an Interior Design Business so successful
    13·1 answer
  • Which professional source provides entrepreneurs with expertise and knowledge about buying an existing business in return for co
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!