1 bkcc will earn 1 per share in the coming year and pay a, Ask an Expert

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1. BKCC will earn $1 per share in the coming year and pay a dividend of $0.84. Historically, the firm's ROE has been 10% and its required return on investments is 12%. What is the value of the stock, rounded to the nearest penny?

2. BKCC will generate EBIT of $100 mil in the coming year. They will have $1 mil in depreciation expense and a tax rate of 40%. They will make net new investments of $2 mil over the next year. It has $5 mil in marketable securities, and the market value of debt is $20 mil. The WACC is 10% and free cash flow can grow about 5% per year. If the company has 10 million common shares outstanding, what is the intrinsic value per share rounded to the nearest penny?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92861230

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