Portage Bay Enterprises has $2.5 million in excess cash, no debt, and is expected to have free cash flow of $10.5 million next year. Its FCF is then expected to grow at a rate of 4.5% per year forever. If Portage Bay's equity cost of capital is 8% and it has 9 million shares outstanding, what should be the price of Portage Bay stock?
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Portage Bay Enterprises has $2.5 million in excess cash, no debt, and is expected to have
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- Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1 and by 5% in Year 2. Its operating profitability ratio (OP) is 10%, and its capital requirement ratio (CR) is 80%? What are the projected sales in Years 1 and 2? What are the projected amounts of net operating profit after taxes (NOPAT) for Years 1 and 2? What are the projected amounts of total net operating capital (OpCap) for Years 1 and 2? What is the projected FCF for Year 2?Portage Bay Enterprises has $1 million in excess cash, no debt, and is expected to have free cash flow of $13 million next year. Its FCF is then expected to grow at a rate of 2% per year forever. If Portage Bay's equity cost of capital is 10% and it has 7 million shares outstanding, what should be the price of Portage Bay stock? The price of Portage Bay's stock is $ per share. (Round to the nearest cent.)Gremlin Industries will pay a dividend of $1.65 per share this year. It is expected that this dividend will grow by 5% per year each year in the future. The current price of Gremlin's stock is $22.20 per share. What is Gremlin's equity cost of capital?
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