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julsineya [31]
2 years ago
10

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 4% per year indefinitely. Scampini has no debt or preferred stock, its WACC is 10%, and it has zero non-operating assets. If Scampini has 40 million shares of stock outstanding, what is the stock’s value per share?
Business
1 answer:
Feliz [49]2 years ago
7 0

Answer:

The stock’s value per share is $10.42

Explanation:

For:    

FCF1 = Expected cash flow of the firm

        = $25 million  

WACC = 10%    

g = 4%    

Firm value = FCF1/(WACC - g)    

                  = 25,000,000/(0.10 - 0.04)    

                  = $416,666,666.67    

We know that there is no debt & preferred stock, so the firm value will be equal to Equity value :

Firm value = Equity value

                 = $416,666,666.67

stock value per share = Equity Value/No. of share outstanding

                                     = $416,666,666.67/40,000,000

                                     = $10.42 per share

Therefore, The stock’s value per share is $10.42

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Explanation:

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Ratification occurs when the principal accepts responsibility for the agent's acts. For ratification to be valid, the agent must
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Answer:

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Explanation:

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Answer:

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Explanation:

A differential analysis is a managerial accounting technique that considers factors that are unique to each decision and uses those factors to arrive at a decision.

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I need help with number 5!!
kakasveta [241]
What is number 5 about
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