Dana Corporation does not pay a common dividend. Use the Cash Flow From Assets (CFFA) model to estimate the firm’s intrinsic stock price for December 31, 2023. You are given the following data for that purpose (note that all figures other than WACC are in Millions): Dana Corp. Financial Data ($Millions) Year 0 2020 2021 2022 2023 Free Cash Flow (FCF) $ 16.000 $ 16.800 $ 17.640 $ 18.522 Weighted-Average Cost of Capital (WACC) 8.25% Mktbl Securities (Non-Operating ST assets) $ 32.66 Non-Operating LT Assets $ 184.00 Short-term debt $ 52.00 Long-term debt $ 224.00 Preferred Equity $ 46.00 # Common Shares Outstanding (Millions) 15 What is the intrinsic value of Dana Corp.’s common stock? And what is the Value of Dana Corp.’s common equity?
Dana Corporation does not pay a common dividend. Use the Cash Flow From Assets (CFFA) model to estimate the firm’s intrinsic stock price for December 31, 2023. You are given the following data for that purpose (note that all figures other than WACC are in Millions): Dana Corp. Financial Data ($Millions) Year 0 2020 2021 2022 2023 Free Cash Flow (FCF) $ 16.000 $ 16.800 $ 17.640 $ 18.522 Weighted-Average Cost of Capital (WACC) 8.25% Mktbl Securities (Non-Operating ST assets) $ 32.66 Non-Operating LT Assets $ 184.00 Short-term debt $ 52.00 Long-term debt $ 224.00 Preferred Equity $ 46.00 # Common Shares Outstanding (Millions) 15 What is the intrinsic value of Dana Corp.’s common stock? And what is the Value of Dana Corp.’s common equity?
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter3: Financial Statements, Cash Flow, And Taxes
Section: Chapter Questions
Problem 19SP
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Dana Corporation does not pay a common dividend. Use the Cash Flow From Assets (CFFA) model to estimate the firm’s intrinsic stock price for December 31, 2023. You are given the following data for that purpose (note that all figures other than WACC are in Millions):
| Dana Corp. Financial Data ($Millions) | ||||
| Year 0 | ||||
| 2020 | 2021 | 2022 | 2023 | |
| $ 16.000 | $ 16.800 | $ 17.640 | $ 18.522 | |
| Weighted-Average Cost of Capital (WACC) | 8.25% | |||
| Mktbl Securities (Non-Operating ST assets) | $ 32.66 | |||
| Non-Operating LT Assets | $ 184.00 | |||
| Short-term debt | $ 52.00 | |||
| Long-term debt | $ 224.00 | |||
| Preferred Equity | $ 46.00 | |||
| # Common Shares Outstanding (Millions) | 15 |
What is the intrinsic value of Dana Corp.’s common stock? And what is the Value of Dana Corp.’s common equity?
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