Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Bayani Bakery's most recent FCF was $49 million; the FCF is expected to grow at a constant rate of 6%

Bayani Bakery's most recent FCF was $49 million; the FCF is expected to grow at a constant rate of 6%

Finance

Bayani Bakery's most recent FCF was $49 million; the FCF is expected to grow at a constant rate of 6%. The firm's WACC is 11%, and it has 15 million shares of common stock outstanding. The firm has $30 million in short-term investments, which it plans to liquidate and distribute to common shareholders via a stock repurchase; the firm has no other nonoperating assets. It has $368 million in debt and $63 million in preferred stock.

1) What is the value of operations? Enter your answer in millions. Round your answer to two decimal places.

2) Immediately prior to the repurchase, what is the intrinsic value of equity? Enter your answer in millions.  Round your answer to two decimal places.

3) Immediately prior to the repurchase, what is the intrinsic stock price? Round your answer to the nearest cent.

4) How many shares will be repurchased? Enter your answer in millions. Round your answer to two decimal places.

5) How many shares will remain after the repurchase? Enter your answer in millions. Round your answer to two decimal places.

6) Immediately after the repurchase, what is the intrinsic value of equity? Enter your answer in millions. Round your answer to two decimal places.

7) The intrinsic stock price? Round your answer to the nearest cent.

 

Option 1

Low Cost Option
Download this past answer in few clicks

3.96 USD

PURCHASE SOLUTION

Already member?


Option 2

Custom new solution created by our subject matter experts

GET A QUOTE