Solved: Suppose wacc is 9 and xyz has 20 million in cash reserve, Finance Basics

+44 141 628 6080
[email protected]

Suppose wacc is 9 and xyz has 20 million in cash reserve

1. Analysts are trying to put a price tag on Company XYZ's stock. XYZ is expected to have Free Cash Flow of $50 million, $75 million respectively at the end of years 1 and 2 and then cease operations. Suppose WACC is 9% and XYZ has $20 million in cash reserve and $30 million in debt. With 5 million shares outstanding, how much is the price per share now?

Solution Preview :

Prepared by a verified Expert

Finance Basics: Suppose wacc is 9 and xyz has 20 million in cash reserve

Reference No:- TGS02553267

Now Priced at $10 (50% Discount)

Recommended (95%)

Rated (4.7/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : What would you say happened to this victim what are some

a detective is called to a crime scene where the female victim is in the kitchen and has been stabbed 13 times the

Q : Examines freedom of speech and expression as they relate to

case study - high court rules in online threat religious rights casesprovide a two page case study which examines

Q : Suppose wacc is 9 and xyz has 20 million in cash reserve

analysts are trying to put a price tag on company xyzs stock xyz is expected to have free cash flow of 50 million 75

Q : College park sports has just paid a dividend of 10share and

college park sports has just paid a dividend of 10share and has announced that it will increase the dividend by 4share

Q : Suppose wacc is 9 and xyz has 20 million in cash reserve

1 analysts are trying to put a price tag on company xyzs stock xyz is expected to have free cash flow of 50 million

Q : What is the amount of ellies dividend income on the

apricot corporation distributes property 125000 basis and 150000 fair market value to its sole shareholder ellie the

Q : Healthy cereal researchers collected data on 77 brands of

question healthy cereal researchers collected data on 77 brands of cereal at a local supermarket25 for each brand the

Q : The risk free rate is 5 and the market risk premium is 8

you have a portfolio of 10000 with a return of 12 you are planning to sell one stock currently worth 2000 with a beta

Q : Why is the control environment so important to effective

consult paragraph 25 of pcaob auditing standard no 5 define what is meant by control environment why is the control

1956991

Questions
Asked

3,689

Active Tutors

1441409

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Asked Questions

Determine what the minimum price differential is

Your objective is to determine what the minimum price differential ($x/barrel) is, at which this process becomes an acceptable investment

Problem concerning capital regulation

Which of the following was the most important addition (amendment) to the Basel I capital regulation that was introduced in 1996

Find mikes modified adjusted gross income

Interview Notes . Mike Cooper is 26 years old and single. He provides all of his own support. . Mike works at a grocery store and earned $15,250

Calculate the growth rate in dividends

Shares outstanding are 6,210,000 and the company has a payout ratio of 49%. Calculate the growth rate (g) in dividends.

Understand how this could affect sales and costs

TRG manufactures umbrellas which have seasonal demand. The company is considering reducing levels of working capital,

What steps reduce dlg requirement for external finance

Which two of the following steps will reduce DLG's requirement for external finance? Solution A. Offering longer credit terms to customers.

Discuss on gambling losses as a deduction

Interview Notes . Helends 48 years old and files as single. "Her 2028 adjustedgross income (AGH is $51,000, which includes gambling winnings