Check My Work (3 remaining) Click here to read the eBook: Enterprise-Based Appro

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Check My Work (3 remaining) Click here to read the eBook: Enterprise-Based Approach to Valuation CORPORATE VALUATION Scampini Technologies is expected to generate $150 million in free cash flow next year, and FCF is expected to grow at a constant rate of 7% per year indefinitely. Scamp i has no debt or preferred stock, and its wACC is 14%. If Scampini has 45 million shares of stock outstanding, what is the stock's value per share? Round your an erto two o decimal places Each share of common stock is worth , according to the corporate valuation model. 16, 2

Explanation / Answer

Calculation of Stock vaue per share

Value=Discounted value of cash flow/ No.of common stocks

=(150/14-7)/45

=2142.86/45

=$47.62 per stock

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