Answer:
Ans. the value of the stock today is $6.31
Explanation:
Hi, we need to bring to present value all the cash flows of this stock, that is bringing to present value the cash flows from year 1 through 6 and the horizon value which is the value in year 6 of the cash flows from 6 and beyond.
The formula to use for the dividends from year 1 - 6 is:

Where:
r = is the discount rate
n = number of consecutive dividends
And the present value of the horizon value is:

So everything together is:

Now, the numbers

So based on the future cash flows of this share, its fair price is $6.31
Best of luck.
The principal difference between public and privately held companies is that public companies have shares that can be publicly traded on a stock market. A privately held company might become a publicly held company by conducting an initial public offering, which is the offering of shares of the company to the public.
In the models that describe population growth, r stands for<em> </em><span><em>per capita population growth rate</em></span>
Answer:
Explanation:
Net cash provided by operating activities 140,000
Less: Capital expenditures -81,000
Less: Cash dividends paid -10,000
Free cash flow 49,000