Question: need quick, will like! Covan, Inc. is expected to have the following free cash flow. a. Covan has 7 mition shares outstanding. $2 mition in
Covan, Inc. is expected to have the following free cash flow. a. Covan has 7 mition shares outstanding. $2 mition in excess cash, and it has no debt if is cost of capital is 11%, what should be its stock price? b. Covan adds its FCF to cash, and has no plans to add debt. If you plan to sell Covan at the beginning of year 2 , what is its expected price? c. Assume you bought Covan stock at the beginning of year 1 What is your expected return from holding Covan stock until year 2 ? a. Covan has 7 milion shares outstanding. $2 mullion in excess cash, and it has no debt if its cost of capital is 11%, what shoula be its stock price? The stock price should be s (Round to the nearest cent) b. Covan adds its FCF to cash, and has no plans to add debt If you plan to sell Covan at the beginning of year 2, what is its expected price? If you plan to sell Covan at the beginning of year 2 , its pnce should bes (Round to the nearest cent) c. Assume you bought Covan stock at the beginning of year 1 What is your expected retum from holding Covan stock until yeat 2 ? Your expected return from holding Covan stock untal the beginning of year 2 is \% (Round to one decimal place) Data table
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