Advanced Chemical Industries is awaiting the verdict from a court case over whether it is liable for the clean-up of wastes on a disused factory site. If it is liable, this will result in a reduction of its free cash flow by $12 million per year for ten years. If it is not liable, there will be no effect. On the close of trading the day before the announcement of the verdict, Advanced Chemicals was trading at $20 per share. Most investors calculate that there is a 100% chance that Advanced Chemicals will have a verdict returned against them. One investor, Jo, has performed extensive research into the outcome of the trial and estimates that there is no chance Advanced Chemicals will have a verdict returned against them. Given that Advanced Chemicals has 60 million shares outstanding and an equity cost of capital of 8% with no debt, Jo's estimate of the value of a share of Advanced Chemicals would be how much more than the market price?
◦ $1.34
◦ $20.46
◦ $20.96
◦ $20.68
Brumbies awaiting their sale and new homes.
Case 1: The outgroups help resolve the polytomy
Discrimination between p and ppi and chemical structure of ATP
A typical output driver. In this case, the PCM applies voltage to the fuel pump relay coil to ...
Advanced functions application
The family described in Example Case 2