Atlantick Corp. has gathered the following data on four companies in which it might make an invest¬ment or an outright purchase.

Required:
(a) Estimate the share price of each company using the dividend valuation method
(b) Estimate the share price of each company using the free cash flow method.

Transcribed Image Text:

At Ltd. Sat Inc. Assat Corp. Fassat Ltd $1.32 15% $2.40 12% 750,000 $1.000,000 $1,500,000 $2.500,000 180,000 $2.400,000 8% 6,000,000 $0.48 14% $0.72 8% Dividend per share Cost of capital Market value of loans outstanding Next year's free cash flows Annual growth rate for free cash flows Number of shares outstanding 0% 3,000,000 $1.400,000 3% ,000,000 6% 5,000,000