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  #1  
Old 03-18-2005, 09:41 PM
Urbamworm Urbamworm is offline
 
Join Date: Jan 2005
Posts: 41
Default Anyone know FINANCE? well come in

Can you do this problem?

A firm recently paid a dividend, D0, of $1.25. The company expects to have supernormal growth of 20% for 2 years before the dividend is expected to grow at a constant rate of 6%. If the firm’s required return is 10%, what is the intrinsic stock value today?
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  #2  
Old 03-18-2005, 09:56 PM
Urbamworm Urbamworm is offline
 
Join Date: Jan 2005
Posts: 41
Default RE: Anyone know FINANCE? well come in

ok how about this one?

A firm has 200 million shares of stock outstanding, and an analyst is trying to estimate each share’s intrinsic value. The firm is expected to generate $175 million in free cash flow next year, and it is expected to grow at a constant rate of 7% per year. Its corporate WACC is 8%, and the firm has $400 million of debt and preferred stock. What is the value of the company’s stock per share?

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  #3  
Old 03-19-2005, 08:47 PM
swift_A4 swift_A4 is offline
 
Join Date: Feb 2005
Location: Vancouver (Canada) & Seattle
Posts: 1,089
Default RE: Anyone know FINANCE? well come in

i am a finance major
... the first problem is a perpetuity of a dividend... there is a formula which i cannot remember right now. it is in your book find it.
the second one.... man that makes my brain hurt. too much thinking during spring break... um post again if you don't figure them out and i will actually try and answer the q's
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