Question: please help fast!!! thank you i will upvote for clear work <3 Dionex Corporation, a leader in the development and manufacture of ion chromography systems
please help fast!!! thank you i will upvote for clear work <3
Dionex Corporation, a leader in the development and manufacture of ion chromography systems (used to identify contaminants in electronic devices), reported earnings per share of $2.02 in 1993, and paid no dividends. These earnings were expected to grow 14% a year for five years (1994 to 1998) and 7% a year after that. The firm reported depreciation of $2 million in 1993 and capital spending of 54.20 million, and had 7 million shares outstanding. The working capital was expected to remain at 50% of revenues, which were $106 million in 1993, and were expected to grow 6% a year from 1994 to 1998 and 4% a year after that. The firm was expected to finance 10% of its capital expenditures and working capital needs with debt. Dionex had a beta of 1.20 in 1993, and this beta was expected to drop to 1.10 after 1998. (The Treasury bond rate was 7%, and the market risk premium was 5.5%.) Growth Rate 5 yr 14% Year 1993 1994 1995 Growth Rate after 5yr 7% EPS $2.02 $2.30 $2.63 Beta 1993 to 1998 1.20 Capital Spending Beta after 1998 1.10 Depreciation Revenue 1993 106 m Revenue Revenue growth till 1998 6% Change in Working Capital Revenue growth after1998 4% Treasury Bond Market Risk premium
A. Estimate the value per share today, based on the FCFE model. (please show how your inputting the formulas step by step with explanation, what numbers are going in the formula as well)
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