Based on the free cash flow valuation model, you estimate Tigers Construction's value of operations is $750 million. Its balance sheet shows $50 million of short-term investments that are unrelated to operations, $100 million of accounts payable, $100 million of notes payable, $200 million of long-term debt, $40 million of common stock, and $160 million of retained earnings. Tigers has 10 million shares of stock outstanding. What is the best estimate for the stock price per share ? a. $45.1 b. $52.5 c. $47.5 d. $50.0 e. $42.9
Based on the free cash flow valuation model, you estimate Tigers Construction's value of operations is $750 million. Its balance sheet shows $50 million of short-term investments that are unrelated to operations, $100 million of accounts payable, $100 million of notes payable, $200 million of long-term debt, $40 million of common stock, and $160 million of retained earnings. Tigers has 10 million shares of stock outstanding. What is the best estimate for the stock price per share ? a. $45.1 b. $52.5 c. $47.5 d. $50.0 e. $42.9
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter14: Distributions To Shareholders: Dividends And Repurchases
Section: Chapter Questions
Problem 12P: Bayani Bakerys most recent FCF was 48 million; the FCF is expected to grow at a constant rate of 6%....
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Based on the free cash flow valuation model, you estimate Tigers Construction's value of operations is $750 million. Its balance sheet shows $50 million of short-term investments that are unrelated to operations, $100 million of accounts payable, $100 million of notes payable, $200 million of long-term debt, $40 million of common stock, and $160 million of retained earnings . Tigers has 10 million shares of stock outstanding. What is the best estimate for the stock price per share ?
| a. |
$45.1 |
|
| b. |
$52.5 |
|
| c. |
$47.5 |
|
| d. |
$50.0 |
|
| e. |
$42.9 |
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