righam Chapter 09 End-of-Chapter Problems e on Jun 24 at 6 PM ED Assignment: Bri

Question

righam Chapter 09 End-of-Chapter Problems e on Jun 24 at 6 PM ED Assignment: Brigham Chapter 09 E Check My Work (a remaining) Corporate valuation is expected to generate $100 milion in free cash flow next year, and FCF is expected to grow at a constant rate of 7% per year indefinitely. Scampini the stock's value per share? Roud your answer to two has no debt o preferred stock, and its woc decimal places 10%. Ir Scampini has 40 milion shares of stock outsta Ong, what ??.according to the corporate valuation model. Check My Work (1 remaining) 21

Explanation / Answer

Value of the firm (using the formula for finding the PV of a growing perpetuity) = 100/(0.10-0.07) = $     3,333.33 million Number of shares 40 million Each share of common stock is worth $           83.33

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