Open Door Corporation has $3 million in earnings on $20 mill…

Open Door Corporation has $3 million in earnings on $20 million in sales and has 1 million shares outstanding. Earnings per share of comparable firm A is $5, and earnings per share of comparable firm B is $2. Comparable firm A’s stock is trading for $50, and comparable firm B’s stock is trading for $28. What is the estimated stock price of Open Door using the method of comparables?

Suppose you have estimated the free cash flows to equity hol…

Suppose you have estimated the free cash flows to equity holders over the next five years as follows: Year 1: $33.2 millionYear 2: $35.8 millionYear 3: $42.3 millionYear 4: $36.9 millionYear 5: $40.5 million You expect FCFE to remain constant at $38.6 million after year 5. If the company’s cost of equity is 13%, the WACC is 12%, the YTM is 10%, and the tax rate is 34%, then what is the value of the firm’s equity (in millions)?