Q1. Help Jenny to forecast dividend payments for Reeby Sports and to estimate the value of the stock. You do not need to provide a single figure. For example, you may wish to calculate two figures, one on the assumption that the opportunity for further profitable investment disappears after six years and another assuming it disappears after eight years.

Q2. How much of your estimate of the value of Reeby's stock comes from the present value of growth opportunities?

Answer rating: 100% (QA)

1 Step 1 The forecasts presented in Tables 410 and 411 do not show free cash flow and financing requirements These calculations have been made in Table 1 Free cash flow for 2005 is 23 million But divi... View the full answer