Scampini Technologies is expected to generate $25 million in free cash flow next year, and FCF is expected to grow at a constant rate of 4% per year indefinitely. Scampini has no debt or preferred stock, and its WACC is 10%. 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
Answers
Each share of common stock is worth $6.94, according to the corporate valuation model.
Scampini Technologies is expected to generate $25 million in free cash flow next year, with a growth rate of 4% per year indefinitely. With no debt or preferred stock, the firm's value is equal to its equity value. Using the corporate valuation model, the firm's value is calculated by dividing the expected cash flow (FCF1) by the weighted average cost of capital (WACC) minus the growth rate (g).
In this case, the firm value is $416,666,666.67. With 60 million shares outstanding, the stock's value per share is obtained by dividing the equity value by the number of shares, resulting in $6.94 per share. The calculation are as follows:
FCF1 = Expected cash flow of the firm
FCF1 = $25 million
WACC = 10%
g = 4%
Hence:
Firm value = FCF1 / (WACC - g)Firm value = 25,000,000 / (0.10 - 0.04)Firm value = $416,666,666.67We know that there is no debt or preferred stock, so the firm value will be equal to the equity value:
Firm value = Equity valueFirm value = $416,666,666.67Formula for Stock value per share:
Stock value per share = Equity Value / Number of shares outstanding
Hence:
Stock value per share = $416,666,666.67 / 60,000,000Stock value per share = $6.94 per shareTherefore, each share of common stock is worth $6.94.
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Related Questions
write a summary of the functions area of each department:
- human resources
- finance & accounts
Answers
Human resources: The human resources department is responsible for managing the organization's employees. This includes tasks such as recruiting and hiring new employees, training and development, managing employee benefits, and maintaining employee records. The human resources department works to ensure that the organization has a skilled and motivated workforce that is able to achieve its goals and objectives.
Finance & accounts: The finance and accounts department is responsible for managing the organization's financial resources. This includes tasks such as budgeting, accounting, financial planning, and financial reporting. The finance and accounts department works to ensure that the organization has the financial resources it needs to operate effectively and efficiently. They are also responsible for ensuring compliance with financial regulations and laws.
Which of the following statements is true about mortgages?
A. The adjustable mortgage has an adjustable term of years but
fixed interest rate.
B. The adjustable mortgage has adjustable rates over a set amount
of time.
C. The fixed mortgage has a fixed term of years but adjustable
interest rate.
D. The fixed mortgage has an adjustable interest rate over a set time.
Answers
The statement true about mortgage is B. adjustable mortgage has adjustable rates over a set amount of time.
A mortgage is basically a pact or agreement between the person who is providing a loan in the form of money and the person taking the loan in the form of money. It includes that if you fail to return the amount the lender has all the rights by which they can take away your property that you have submitted as a security deposit in form of property papers.
There are two types of mortgages on the basis of interest rates first is adjustable mortgages which has adjustable rates of interest through a fixed period of time. On the other hand is fixed mortgages which means there is a fixed rate of interest for a fixed period of time.
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plz help!!! ill mark brainliest hurryyyy
Answers
In your opinion, will social media platforms such as Twitter ever replace newspapers or television news? Why or why not?
Answers
Answer: No
Explanation: Because Twitter is a social media and much of the information from it is from actual news sources that are linked or just paraphrased. News tweets you'll see from Twitter and other platforms like Reddit are always from a different source and the people who use these social medias are not always reputable enough for news to actually come from them.
what is a form in computer?
Answers
In a database context, a form is a window or screen that contains numerous fields, or spaces to enter data. Each field holds a field label so that any user who views the form gets an idea of its contents. A form is more user friendly than generating queries to create tables and insert data into fields.
Jill filed her taxes and found out that she owes an additional $1,500.
Unfortunately, she can't afford to pay that amount immediately. What options
does she have? What are the pros and cons of using these options?
Answers
Answer:
Take out a loan from a bank don't borrow from family it could ruin your relationship with them
Explanation:
If you take a loan you might have to pay interest depends on the bank and the time you take to pay it back.
If you take a loan from a family member it depends on their financial situation if they have loads of money they might be patient but if they have not lots of money but still some money they might be annoyed on how long you take so my conclusion is take money from the bank.
What is the purpose of assessment planning?.
Answers
Your assessment project will be guided by a framework provided by an assessment plan, ensuring that everyone is aware of their individual responsibilities and the overall timeline.
What is the primary objective of the examination?
The primary goal of assessment is to assist in determining which students have learning gaps and which remedial steps should be taken to close those gaps so that students can continue or improve their education.
What does a student get out of an assessment?
Students' motivation, learning, and grading should all be incorporated into assessment. Methods of assessment that have been thoughtfully designed provide useful data about how students learn. They let us know what understudies realized, how well they learned it, and where they battled.
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Price and profit allocation decisions are usually best made:
A. at the subsidiary headquarters.
B. at the IC headquarters.
C. cooperatively by both subsidiary and IC headquarters.
D. at the subsidiary headquarters in the host country with the lowest prices.
E. none of the above.
Answers
Price and profit allocation decisions are usually best made cooperatively by both subsidiary and IC headquarters. Hence option A is correct.
This approach acknowledges the importance of considering both local market dynamics and global strategic objectives. By involving both subsidiaries and IC headquarters in the decision-making process, companies can leverage their respective expertise and insights.
Subsidiary headquarters, situated in the host country, possess a deep understanding of the local market conditions, including customer preferences, competition, and regulatory frameworks. They can provide valuable input regarding pricing strategies that align with the specific needs and characteristics of the local market.
On the other hand, IC (International Company) headquarters bring a global perspective, strategic direction, and coordination across various subsidiaries. They possess a broader view of the company's overall profitability and long-term objectives. Involving IC headquarters ensures consistency in pricing across different markets, maximizes global profitability, and maintains a cohesive brand image.
Therefore, a cooperative approach allows for the integration of local market knowledge and global strategic considerations, leading to more informed and effective price and profit allocation decisions.
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Conducting a search of the store is part of store closing duties. Why?
Answers
1. Everything is in place
If things are not in place in a store, things would be very messy when opening the store the next day. Conducting a search of the store to see if everything is in place also ensures that no merchandise was stolen, and if so, persecution would be followed through with accordingly.
2. There is nobody trespassing/lurking
Conducting a search of the store is part of store closing duties because it assures workers that nobody is lurking in the shadows or intruding without the attention of any employee. Trespassing is illegal in most places, and it is a severe felony in some places. Whenever a store attendant is unaware of somebody who is in the store without permission, countless things can happen that do not work in favor of benefitting the business. However, conducting a search of the store during closing time would eliminate this concern.
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For project A in year 2, inventories increase by $11,000 and accounts payable increase by $1,000. Accounts receivable remain the same. Calculate the source or use of cash from the changes in net working capital for year 2.
Answers
The source or use of cash from changes in net working capital can be determined by analyzing the changes in current assets and current liabilities. In this case, for project A in year 2, inventories increase by $11,000, accounts payable increase by $1,000, and accounts receivable remain the same.
To calculate the source or use of cash from the changes in net working capital, we need to consider the formula:
Change in Net Working Capital = Change in Current Assets - Change in Current Liabilities
In this case, the change in net working capital can be calculated as:
Change in Net Working Capital = ($11,000) - ($1,000)
= $10,000
A positive change in net working capital indicates a use of cash, while a negative change indicates a source of cash. Therefore, in year 2, project A resulted in a use of cash amounting to $10,000 from the changes in net working capital.
This means that the increase in inventories ($11,000) exceeded the increase in accounts payable ($1,000), resulting in a net use of cash in managing the working capital requirements of the project.
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The internet makes it more difficult to participate in international trade.
TRUE OR FALSE
Answers
Answer:
TRUE
Explanation:
Because it's giving every player a chance.
What are the other options to insurance
Answers
Medical Cost Sharing Programs. ...
Health Savings Accounts. ...
Medical Services Discount Cards. ...
High-Deductible Policies.
Which is the best description of how a scholarship differs from a federal education grant
Answers
Answer:
Its D on edge i
Explanation:
Answer:
D. Scholarships can be awarded for various reasons, but federal grants are usually based on a student’s financial need.
Explanation:
Edge
Have you ever considered designing a program to help people? Here is your chance. Follow the instructions below to design some of the important elements of your own human services program.
Create a mission statement specific to what you are setting out to accomplish.
Consider the following questions and make notes:
What is the need?
Why do people need your organization?
Who will your organization help?
What is your service population?
Where will these services be made available?
How will you inform people of your services?
List Objectives/Tasks
Immediate
Objective 1: How will you complete this task? (Include logic and reasoning behind the objective: how long do you expect it will take your organization to succeed at accomplishing your objective?)
Long Term
Objective 2: How will you complete this task? (Include logic and reasoning behind the objective: how long do you expect it will take your organization to succeed at accomplishing your objective?)
Staff
How many direct service positions are available? What positions are they?
How many program-planning and design positions are available? What positions are they?
How many administrative positions are available? What positions are they?
What is the total number of staff members needed?
Budget
Define the needs of your organization, such as supplies, equipment needed, property, etc. What role will fundraising play in budget planning?
Evaluation
Design a method for monitoring your progress. Explain the details of how you intend to use this tool to ensure that you are on track for accomplishing your goals for your organization.
Name
Finally, after considering the nature of your organization, develop a name for it.
Make a presentation of your organization's mission statement, goals, target population, principles, etc. This can be in the form of a four-hundred-word essay, a three-page outline, or a graphic representation such as a chart.
Answers
To create a human services program, you must first develop a business plan that aligns with your needs and then create the mission statement.
How to create a business plan?It corresponds to a document used to identify all the needs of a new business, such as its risks, resources, legal requirements, mission, personnel needs, etc. successful.
The mission statement is developed to be the statement of the identity of a business in the market, that is, it is a summarized document that demonstrates the reason for the existence of the business, who are its stakeholders and what are the company's values.
Therefore, questions like "What is the need?" and "Why do people need your organization?" will serve as a guide that will direct the creation of the business plan and mission statement in a way that is more aligned with your objectives.
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Which one of these items is NOT a processed material?
O Paper
O Steel
O Sand
O Glass
Answers
Paper was originally tree, steel was metal, glass was heated to become glass
Which person is financially responsible?
Answers
Answer:
avoids debts
Explanation:
A financially responsible person would want to quick come out of bad debts, even if he is in debt , the payments should be less than 50percent of what he makes
The envelope system is especially helpful for expenses like:.
Answers
The envelope system is usually helpful for items that tend to bust your budget. Things like gas, groceries and bills.
general mills has a variety of brands in its snacks category, including chex, nature valley, fiber one, and cascadian farm. this represents a
Answers
Answer:don't cheat in this class I will tell ur professor in Bemidji about u
Explanation:
John has $10,000 in debt with discover, $4,000 in debt with chase, $9,000 in debt with citi bank, and $3,000 in debt with wells fargo, giving him a total debt of $26,000. what percentage of john's total debt is with discover
Answers
The percentage of John's debts with discover is \(38.46%\), by using percentage calculation.
Given,
John's total debt:
$10,000 with discover$4,000 with chase $9,000 with Citi bank$3,000 with wells FargoTotal debt of John is $26,000, to calculate his Percentage of debt with discover, we need to add all the debts and then calculate how much percentage is 10,000 of 26000.
Calculation is as follows:
\(10000/26000*100=38.46\)
Hence, The percentage of John's debts with discover is \(38.46%\)\(%\), by using percentage calculation.
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Jeff drives his car and travels 60 km east, then comes
back and travels 30 km west all in 2 hours. Find the –
´ Total
distance covered,
´ Average
speed,
´ Total
displacement, and
´ Average
Velocity
wrong or nonsense = report
Answers
Answer:
Average speed
Explanation:
Please mark me as brainliest
Jonathan's father opens a fast food restaurant selling burgers and hot dogs. After a couple of years, Joe's sister designs a logo for the food outlet.
The logo shows a smiling cheeseburger wearing a white cap over the brand name. Everybody liked the design, and now Joe would like to register
the design as their own. How can Joe get the design registered?
A.
as a patent with the United States Patents Office
OB. as a trade secret with the United States Trade Office
OC. as a trademark with the United States Patents and Trademark Office
OD. as a brand name with the United States court of law
OE. as a copyright with the Copyright Office
Answers
Jonathan can get the design registered as a trademark with United States Patents and Trademark Office. Thus, Option C is the correct statement.
What is the importance of a registering a trademark?Trademarking a logo is a simple process, but important considerations should be made before, during, and after the application filing process.
Logos are a distinct and important business asset that can make an unique impression on customers.
Therefore, in order to protect a logo and its unique identifier(s), business owners should think of trademarking a logo with the United States Patent and Trademark Office (USPTO). Option C is the correct statement.
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Answer:
C
Explanation:
These are the people that will give you the trademark.
Jemimah was having problems with the tight scheduling and timelines given to her for one of her technical writing projects. She was failing to meet deadlines regularly and was unable to adjust to a variety of functional changes in the project. In this type of situation, what skill should Jemimah use to manage time and meet deadlines?
Answers
Answer: Strong time management skills.
Explanation:
Time management skills looks at achieving goals in a shorter period of time and making available time for other activities you plan to achieve, it helps you plan your events well void of much stress, gives you focus and meeting up with deadlines.
Jemimah has to work on her time management skills, she has to analyze the project and work out a plan on to meet up before the deadline. She can break the project in bits and set short deadline for her self on each task, in doing so, sh would relieve herself of stress and meet up with the deadline she was given.
Gifts For All has projected sales for next year of: Q1 Q2 Q3 Q4 Sales $ 26,400 $ 28,600 $ 35,500 $ 42,900 Purchases are equal to 58 percent of next quarter's sales. Each month has 30 days, the accounts receivable period is 35 days, and the accounts payable period is 38 days. How much will the company pay suppliers in the third quarter?
Answers
Given data:Q1 Sales = $ 26,400Q2 Sales = $ 28,600Q3 Sales = $ 35,500Q4 Sales = $ 42,900Purchases = 58% of next quarter's salesAccount receivable period = 35 daysAccount payable period = 38 daysTo calculate: How much will the company pay suppliers in the third quarter?Solution:Calculation of purchases for each quarter:Q1: Purchases = 58% of Q2 sales = 0.58 * $28,600 = $16,568Q2: To calculate COGS, we need to know the inventory turnover rate, which is the number of times inventory is sold and replaced during the year
Purchases = 58% of Q3 sales = 0.58 * $35,500 = $20,530Q3: Purchases = 58% of Q4 sales = 0.58 * $42,900 = $24,822Calculation of accounts receivable and payable period in days:Accounts receivable period = 35 daysAccounts payable period = 38 daysNumber of days in the third quarter = 30 days * 3 months = 90 daysLet's calculate the payable period of the third quarter during which the purchases were made.38 days * (90 days / 365 days) = 9.38 daysThus, the company will pay the suppliers for purchases made in Q3 after 9.38 days.Now, let's calculate the amount the company will pay to the suppliers in the third quarter.
The company made purchases of $24,822 during Q3, and it will make payments after 9.38 days for this purchase.The amount paid by the company to the suppliers in Q3= $24,822 * (1 / 365) * (365 - 9.38) / (90) * 30= $24,822 * 0.981 / 3= $8,033 (rounded to nearest dollar)Therefore, the main answer is the amount the company will pay to the suppliers in the third quarter is $8,033.Explanation:We have to find out the amount the company will pay to the suppliers in the third quarter.To solve this question, we have calculated the purchases of each quarter and calculated the payable period of the third quarter during which the purchases were made. After that, we have applied the payable period to the purchase of the third quarter to find out the amount the company will pay to the suppliers in the third quarter.
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A cover letter does all of the following EXCEPT:
Sells you as the best candidate for the job
Introduces you and summarizes your resume
Explains why you don't meet every qualification of the job
Explains why you are interested in the job
Answers
A cover letter does not explain why we don't meet every qualification of the job. The correct option is c.
What is a cover letter?A cover letter can be understood as a written document which is submitted with a job application outlining the applicant's credentials and interest in the open position. A cover letter is often one of only two documents sent to a potential employer, therefore, a well or poorly-written letter can impact whether the applicant is called for an interview. A cover letter which is good complements the resume and explains why the candidate is the ideal person for the job.
Cover letter mistakes can sink a job applicant.
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Which consequences can victims of identity theft face? Check all that apply.
difficulty getting a loan or credit card
O an increase in debt
the loss of a job
difficulty keeping assets
O a loss of money
difficulty landing a new job
Answers
Answer:
difficulty landing a new job
the loss of a job
loss of money
increase in debt
Answer: an increase in debt
a loss of money
difficulty landing a new job
Explanation: did it
Why does Starbucks Coffee consider internal leadership development such an important part of its core business process?
Answers
Answer:
Because Starbucks embraces and openly admires the idea of planning for one's own succession.
Explanation:
Internal leadership development is a process by which firms continue to solve real-life issues while developing their employees for more significant or leadership roles.
At Starbuck Coffee, it is widely believed that internal leadership development is an essential part of business operations, which helps in the promotion of organizational culture and structure of the company, such that the traditions, missions, and vision of the firm are fully upheld with every leader or CEO successor.
To Starbucks, this is one of the essential values ingrained in their culture, which helps them in attracting potential future leaders, and in turn, assists in planning in advance for the firm to easily replace their top-level leaders from in-house when the time is right,
The role of corporate support in event marketing has
in the past few decades.
a. Increased
b. Decreased
C. Remained status quo
d. Developed
Answers
A.incrased
banks in country x can set their own interest rates. how would a bank in this country set their nominal interest rates
Answers
In a country where banks can set their own interest rates, the process of determining nominal interest rates can vary depending on several factors.
Market Conditions: Banks analyze the overall economic conditions, such as inflation rates, GDP growth, and central bank policies. They aim to align their nominal interest rates with the prevailing market trends to stay competitive and attract borrowers or depositors.
Cost of Funds: Banks need to cover their own expenses and generate profits. They evaluate their cost of acquiring funds, such as interest paid on deposits and loans from other financial institutions. If the cost of funds is high, banks may need to set higher nominal interest rates to maintain profitability.
Risk Factors: Banks assess the risks associated with lending or investing activities. They consider factors like the creditworthiness of borrowers, collateral requirements, and market volatility. Higher-risk loans or investments may warrant higher nominal interest rates to compensate for the increased probability of default or loss.
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Prepare the journal entry under basis 2, assuming that Chester Company did not remit payment until July 29. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
July 29
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
Answers
The correct answer is
July 29
Accounts Payable
$1,800
Cash
$1,800
July 29
Accounts Payable $800
Interest Expense $20
Cash $820
In an organization's accounting system, a journal entry documents a commercial transaction.
The foundation of the double-entry accounting method, which has been around for centuries, is made up of journal entries.
They enable tracking of the purposes for which a company has spent its resources and the sources of those resources.
Every transaction must be documented in at least two accounts according to the double-entry accounting technique.
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Given the following table, how many workers should be hired to maximize profits? LaborMarginal Product LaborVMPLWage 18$32$100 232$128$100 316$64$100 4-1$-4$100 5-12$-48$100 A. 1 B. 2 C. 3 D. 4
Answers
The number of workers that should be hired to maximize profits is 2 workers. Therefore, the correct option is B.
To determine how many workers should be hired to maximize profits, we will analyze the given table, focusing on the Marginal Product of Labor (MPL), Value of Marginal Product of Labor (VMPL), and Wage. To maximize profits, you should hire workers until the VMPL is equal to or less than the wage.
Step 1: Compare VMPL with the wage for each labor unit.
Step 2: Identify the labor unit where VMPL is equal to or less than the wage.
Step 3: Hire workers up to that labor unit.
Analyzing the table:
1. For the first worker, VMPL ($32) is less than the wage ($100).
2. For the second worker, VMPL ($128) is greater than the wage ($100).
3. For the third worker, VMPL ($64) is less than the wage ($100).
4. For the fourth worker, VMPL (-$4) is less than the wage ($100).
Following the steps, we identify the labor unit where VMPL is equal to or less than the wage as the second worker. Therefore, to maximize profits, you should hire option B: 2 workers.
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