Business, 25.09.2020 02:01 kie27

15-12: Stock Repurchase Bayani Bakery's most recent FCF was $50 million; the FCF is expected to grow at a constant rate of 5%. The firm's WACC is 10%, and it has $20 million shares of common stock outstanding. The firm has $86 million in short-term investments, which it plans to liquidate and distribute to common shareholders via a stock repurchase; the firm has no other non-operating assets. It has $368 million in debt and $68 million in preferred stock. a. What is the value of operations? b. Immediately prior to the repurchase, what is the intrinsic value of equity? c. Immediately prior to the repurchase, what is the intrinsic stock price? d. How many shares will be repurchased? How many shares will remain after the repurchase? e. Immediately after the repurchase, what is the intrinsic value of equity? The intrinsic stock price?

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 15:30

In 2015, lori assigned a paid-up whole life insurance policy to an irrevocable life insurance trust (ilit) for the benefit of her three children. the ilit contained a crummey provision for the benefit of each child. at the time of the transfer, the whole life insurance policy was valued at $200,000, and since lori had not made any other taxable gifts during her lifetime, she did not owe any gift tax. lori died in 2016, and the face value of the whole life insurance policy of $2,000,000 was paid to the ilit. regarding this transfer, how much is included in lori’s gross estate at her death?

Answers: 1

Answer

Business, 22.06.2019 20:30

Almeda products, inc., uses a job-order costing system. the company's inventory balances on april 1, the start of its fiscal year, were as follows:

Answers: 2

Answer

Business, 22.06.2019 21:40

Which of the following comes after a period of recession in the business cycle? a. stagflation b. a drought c. a boom d. recovery

Answers: 1

Answer

Business, 22.06.2019 23:20

Assume a competitive firm faces a market price of $60, a cost curve of c = 0.003q^3 + 25q + 750, and a marginal cost of curve of: mc = 0.009q^2 + 25.the firm's profit maximizing output level (to the nearest tenth) is , and the profit (to the nearest penny) at this output level is $ will cause the market supply to (shift right/shift left). this will continue until the price is equal to the minimum average cost of $

Answers: 2

Answer

You know the right answer?

15-12: Stock Repurchase Bayani Bakery's most recent FCF was $50 million; the FCF is expected to grow...

Questions