Purchase Solution

Stock Analysis

Not what you're looking for?

Ask Custom Question

Company x is expected to generate $150 million in free cash flow next year, and FCF is expected to grow at a constant rate of 5% per year indefinitely. Company x also has no debt or preferred stock, and its WACC is 10%. If company x has 50 million shares of stock outstanding, what is the stock's value per share?

Purchase this Solution

Solution Summary

This solution is comprised of detailed explanation and step-by-step calculation of the given problem and provides the stock's value per share.

Solution Preview

Please refer to the attachment for the solution.

Company X's free cash flow is expected to grow at a constant rate, hence ...

Solution provided by:
Education
  • MSc, Osmania University
  • MSc, Indian Institute of Technology - Roorkee (I.I.T.-ROORKEE)
  • BSc, Banaras Hindu University
Recent Feedback
  • "Very fast turnaround. Excellent communication! Much appreciated!"
  • "excellent"
  • "excellent"
  • "excellent work"
  • "Fantastic..great solution and very well explained!!!!"
Purchase this Solution


Free BrainMass Quizzes
Learning Lean

This quiz will help you understand the basic concepts of Lean.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.