Question: PLEASE ANSWER THIS WHOLE TWO QUESTION THANK YOU 8. Problem 9.15 (Corporate Valuation) eBook Problem Walk-Through Dantzler Corporation is a fast-growing supplier of office products.
PLEASE ANSWER THIS WHOLE TWO QUESTION THANK YOU
8. Problem 9.15 (Corporate Valuation) eBook Problem Walk-Through Dantzler Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFS) during the next 3 years, after which FCF is expected to grow at a constant 7% rate. Dantzler's WACC is 10%. Year 23 FCF (5 millions) - $23 $33 $42 a. What is Dantzler's horizon, or continuing, value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3.) Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. Do not round intermediate calculations. Round your answer to two decimal places. million b. What is the firm's market value today? Assume that Dantzler has zero non-operating assets. Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. Do not round intermediate calculations. Round your answer to two decimal places. million C. Suppose Dantzler has $140.30 million of debt and 37 million shares of stock outstanding. What is your estimate of the current price per share? Write out your answer completely. For example, 0.00025 million should be entered as 250. Do not round intermediate calculations. Round your answer to the nearest cent. eBook Carnes Cosmetics Co.'s stock price is $52, and it recently paid a $1.25 dividend. This dividend is expected to grow by 17% for the next 3 years, then grow forever at a constant rate, g; and rs = 10%. At what constant rate is the stock expected to grow after Year 3? Do not round intermediate calculations. Round your answer to two decimal places
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