Question: Scampini Technologies is expected to generate $ 1 7 5 million in free cash flow next year , and FCF is expected to grow at

Scampini Technologies is expected to generate $ 175 million in free cash flow next year , and FCF is expected to grow at a constant rate of 3% per year indefinitely . Scampini has no debt or preferred stock , and its WACC is 11%, and it has zero nonoperating assets . If Scampini has 60 million shares of stock outstanding , what is the stock's value per share ? Do not round intermediate calculations . Round your answer to the nearest cent Each share of common stock is worth $ according to the corporate valuation model .

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

9.3 DPS CALCULATION A company just paid a dividend of $2.00 a share (i.e., D(O) = $2.00). The you expect the dividend to grow 10% a year for the next 3 years and then at 15% a year thereafter. What...

Q:

9.5 CORPORATE VALUATION You expect a company to generate $30 million in free cash flow next year, and you expect the FCF to grow at a constant rate of 5% per year indefinitely. The company has no...

Q:

please help Homework Assignment 6 - Word Mailings Review View Add-ins Help Tell me what you want to do -.A. E=35 Paragraph . 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subt Styles 8. S&K...

Q:

9.5 CORPORATE VALUATION You expect a company to generate $30 million in free cash flow next year, and you expect the FCF to grow at a constant rate of 5% per year indefinitely. The company has no...

Q:

S&K Technologies expects to generate $100 million in free cash flow next year, and free cash flow is expected to grow at a constant rate of 4% per year indefinitely. The firm does not have any...

Q:

1. Big Bird has securities that have a beta of 2.55. If the market return is expected to be 7.45 percent and the risk-free rate is 2.35 percent, what is Big Bird's required return? 2. Supergirl has...

Q:

I am trying to value Computer Industries (CI) , a privately held computer manufacturer. Computer Industries is currently all-equity financed with 10 mm shares outstanding. They have $30 mm in excess...

Q:

1. 1. Hogwarts Inc. recently paid a dividend (D 0 ) of $2.50. Ant Man, the CFO for Hogwarts Inc. expects to have non-constant growth of 12% for 2 years followed by a constant rate of 3% thereafter....

Q:

You are considering an investment in Olin Industries (Ol), a privately held widget manufacturer. Ol is all-equity financed with 10 mm shares outstanding. They have $20 mm in excess cash. You expect...

Q:

Yin Corp and Yang Inc are considering a merger. Yin expects $75 million in free cash flow next year, which is forecast to grow at 1% forever. Yang expects $25 million in free cash flow next year,...

Q:

The following questions are part of an internal control questionnaire for the inventory process. For each question: a. Describe the misstatement in the financial statements that could occur if the...

Q:

Your role is the VP for New Business Development of a company you have previously described. You have just left the CEOs office and have shared with her your plan for taking the next step in...

Q:

A company had the following cash flows for the year: ( a ) Purchased inventory, $ 4 0 , 0 0 0 ( b ) Paid dividends, $ 1 0 0 , 0 0 0 ( c ) Received loan from a local bank, $ 1 2 0 , 0 0 0 ( d )...

Q:

SIMAD UNIVERSITY Class: BACC25 Subject: Islamic Accounting Instructions: a) Follow The Instructions. Midterm Exam Instructor: All Ibrahim Date: 6-4-2022 b) You Have 1.5 Hrs. To Complete This Test. c)...

Q:

8. Explain the difference between translation and interpretation.

Q:

10. Discuss the complexities of language policies.

Q:

1. Understand how verbal and nonverbal communication differ.