Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the analyst estimated that required return of the

The analyst estimated that required return of the firm is 13.5% and that free cash...

60.1K

Verified Solution

Question

Accounting

image

The analyst estimated that required return of the firm is 13.5% and that free cash flow will grow at 4.2% per year after the forecast period. Weighted average number of shares of the firm is 350 million. Based on the above information, calculate and complete the required information in the following table. If the market price of the share of ZIP is $93.81 per share, what will be your recommendation for an existing investor? ( 5+1=6 marks)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Economics
1.2K views

Explain Demand Estimation and Forecasting with Excel with regard to economics. Give examples as necessary. Why do...

Physics
1.2K views

7 A wind with speed 40 m s blows parallel to the roof of a...

Geometry
1.2K views

ACCVIV clity to record the Description Common Shares Contributed Surplus Retained Earnings Cash COMING SHIGES...

Basic Math
1.2K views

The graph of the hyperbola is given a Use the distance formula to find the...

Basic Math
1.2K views

Mrs Imperiale s credit card has an APR of 13 2 She does not ever...

Algebra
1.2K views

the matrix elect one 210 a 2 R R Ob 2 R R OC 2...

Accounting
1.2K views

Ice Shave Entity writes a put option on Dec 31, 20x1 to purchase 5000 shares...

Accounting
1.2K views

Can you help me figure out the value stream of operating income?

Accounting
1.2K views

If $3,000 has been earned by a companys workers since the last payday in an...

Accounting
1.2K views

The subsidiary's functional currency is the euro. Which statement below is false? Sales revenue will...

Finance
1.2K views

1 Following are the characteristics of preferred stock EXCEPT a. Liquidation priorities b. Non-voting rights...

Finance
1.2K views

Question 4 Capital rationing - divisible projects A company has $1,000,000 available for investment and...