Using the above data, if there are 3 M shares outstanding, what is the value per share?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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You are given the following information for a firm:
Free Cash Flow
$50 million
Corporate Tax Rate
Debt Equity Ratio
Growth Rate of FCF
Equity Beta
Risk Free Rate
11
11
11
II
11
40%
11
0.6
3%
1.2
Market Risk Premium
Debt Outstanding
Using the above data, if there are 3 M shares outstanding, what is the value per share?
2.1%
6%
$50 M
Transcribed Image Text:You are given the following information for a firm: Free Cash Flow $50 million Corporate Tax Rate Debt Equity Ratio Growth Rate of FCF Equity Beta Risk Free Rate 11 11 11 II 11 40% 11 0.6 3% 1.2 Market Risk Premium Debt Outstanding Using the above data, if there are 3 M shares outstanding, what is the value per share? 2.1% 6% $50 M
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