Laissez faire has EPS of 1.89, 750000 common stock shares outstanding and recently paid a dividend of .65. Additionally the firm generated a net income of 1,417, 500 and has common stock equity of 6,000,000 (book value) The firm has a constant rate of growth and your required rate of return is 18%. The firm’s stock is selling for $45 per share. Would you purchase stock in the firm, why or why not? Use the present value of cash flows model and free cash flow approach to determine your answer. The firm’s current FCF is $109237 and the WACC is 15.83% discount.
Regent Papers is a library of common essays on high school, college, undergraduate and postgraduate topics. We have collected top papers from various institution, students and professors. The papers are based on common essay topics in all subjects.