A corporation has a market capitalization of $400,000,000 and annual cash flow of $100,000,000. There are 20,000,000
Question:
A corporation has a market capitalization of $400,000,000 and annual cash flow of $100,000,000. There are 20,000,000 shares outstanding. Maintenance Cap-Ex is $10,000,000. The stock price is $20.
If cash flow in excess of maintenance Cap-Ex is used to repurchase shares, how many shares can be purchased?
Prepare a table that shows management's progression of ownership for the next four years. Assume the firm's value remains at $400,000,000.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Private Equity Transforming Public Stock To Create Value
ISBN: 9780471392927
1st Edition
Authors: Harold Bierman
Question Posted: