The last dividend paid by a company (D0)was $2. The dividend…

The last dividend paid by a company (D0)was $2. The dividend growth rate is expected to be constant at 3% for 2 years, after which dividends are expected to grow at a rate of 8.5% forever. The firm’s required return (rs) is 11.0%. What is the best estimate of the current stock price?

A company’s value of operations is $270 million, based on th…

A company’s value of operations is $270 million, based on the free cash flow valuation model. The best estimate of current market values of its balance sheet accounts is: $21 million in accounts receivable, $15 million in inventory, $9 million in short-term investments that are unrelated to operations, $6 million in accounts payable, $33 million in notes payable, $27 million in long-term debt, $6 million in preferred stock, and $42 million in retained earnings. If the company has 2 million shares of stock outstanding, what is the best estimate of the stock’s price per share?