Quantitative Problem 1 : Assume today is December 31,2019. Barrington Industries expects that its 2020...
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Quantitative Problem : Assume today is December Barrington Industries expects that its after tax operating income EBIT T will be $ million and its depreciation expense will be $ million Barrington's gross capital expenditures are expected to be $ million and the change in its net operating working capital for will be $ million The firm's free cash flow is expected to grow at a constant rate of annually Assume that its free cash flow occurs at the end of each year The firm's weighted average cost of capital is ; the market value of the company's debt is $ billion ; and the company has million shares of common stock outstanding The firm has no preferred stock on its balance sheet and has no plans to use it for future capital budgeting projects Also the firm has zero non operating assets Using the corporate valuation model what should be the company's stock price today December Do not round intermediate calculations Round your answer to the nearest cent per share
Quantitative Problem : Assume today is December Barrington Industries expects that its after tax operating income EBIT T will be $ million and its depreciation expense will be $ million Barrington's gross capital expenditures are expected to be $ million and the change in its net operating working capital for will be $ million The firm's free cash flow is expected to grow at a constant rate of annually Assume that its free cash flow occurs at the end of each year The firm's weighted average cost of capital is ; the market value of the company's debt is $ billion ; and the company has million shares of common stock outstanding The firm has no preferred stock on its balance sheet and has no plans to use it for future capital budgeting projects Also the firm has zero non operating assets Using the corporate valuation model what should be the company's stock price today December Do not round intermediate calculations Round your answer to the nearest cent per share
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