Answer:
= $52.78 per share
Explanation:
<em>The value of a business can be determined using the free cash flow model. According to this model, the value of a firm is is the present value of its free cash flow discounted at the weigthed average cost of capital (WACC.)</em>
<em>The value of equity is the value of firm less value of other instruments (e.g debt and preferred stocks)</em>
<em>Value of equity = Value of the entire firm - Value of debt </em>
We can work out the the value per share using the steps below:
<em>Step 1</em>
<em>Calculate the total value of the firm</em>
Value of firm = 27.50/(0.1-0.07)
= $916.66 million
<em>Step 2</em>
<em>Calculate the value of equity</em>
<em>Value of equity = Value of the entire firm - Value of debt</em>
= $916.66 million - $125.0 million
=791.666 million
<em>Step 3</em>
<em>Calculate the value per share</em>
Value per share = Value of equity/ units of common stock
=$791.666 million/15 million units
= $52.78 per share
Answer:
Please help me, l can not answer it
Explanation:
Answer:
Yes
Explanation:
The answer is yes because education/training will make it so you have more experience/knowledge than the next worker
