A company forecasts free cash flow of $400 at Year 1 and $600at Year 2; after Year 2, the FCF grow at a constant rate of 5%.The company forecasts the tax savings from interest deductionsas $200 in Year 1, $100 in Year 2; after Year 2, the tax savingsgrow at a constant rate of 5%. The unlevered cost of equityis 9%. What is the horizon value of operations at Year 2?($15,750.0) What is the current unlevered value of operations?($14,128.4) What is the horizon value of the tax shield at Year 2?($2,625.0) What is the current value of the tax shield? ($2,477.1)What is the levered value of operations at Year 0? ($16,605.5)

Q: Corporatio is a fast-growing supplier of off products. Analysts project the following free cash…

A: Growth rate = 7.40%WACC = 11.40%YearsFree cash flow (In million)1$102$203$30

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A: The value of firm’s operation can be calculated with the help of below formula,

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A: a). The horizon value of the firm is calculated using following equationHorizon value = Where, FCF3…

Q: Dantzler Corporation is a fast-growing supplier of office products. Analysts project the followin…

A: The value of company can be found as the present value of free cash flow taken on WACC as weighted…

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A: The horizon value is the present value of all perpetual cash flows. For free cash flow, use WACC as…

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A: The equity value is equivalent to the amount of money that would remain if the company's debts were…

Q: Savory Bake Shop's free cash flow today is $1.32 (FCFO = $1.32). Analysts expect the company's free…

A: Year 0Year 1Year 2Year 3$1.32$1.7160 [ $1.32*1.30]$1.8876 [ $1.716*1.10]$1.9820 [ $1.8876*1.05]Note…

Q: Crarytown Motors is expected to have an EBIT of $680,000 next year. Depreciation, the increase in…

A: Cashflow during  year 1:  = EBIT * (1-tax rate) + depreciation - capital expenditure - working…

Q: Your company is expected to earn (as a cash flow) $3 million next year, $3.06 million the following…

A: The value of the company is calculated as the discounted value of cash flows.

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A: We use discounted cash flow (DCF) analysis, which takes into account the time value of money, in…

Q: Company C had a profit of $2 million last year. This company expects the profit to decrease by 0.08…

A: The continuous compounding interest is calculated using the exp formula in excel for solving this…

Q: Give answer of the question

A:

Q: Dantzler Corporation is a fast-growing supplier of office products. Analysts project the following…

A: FCF year 1 = FCF1 = -14FCF year 2 = FCF2 = 21FCF year 3 = FCF3 = 60WACC = 15%/100 = 0.15 in…

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A: Given, The free cash flow for the next year, FCF1​ = $ 150,000.The weighted average cost of capital,…

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A: Net present value refers to the sum of present values of all cash flows associated with an…

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A: Free cash flow is a company's cash flow of money after deducting all operational costs, capital…

Q: You must type in both the answer and all of your work to receive credit. Use the financial…

A: Operating income=1200Taxes=275Capital expenses=$500Depreciation=400

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A: Here,Expected Sales $ 1,600,000,000.00Sales after 5 years $ 1,840,000,000.00Constant Growth rate…

Q: A firm's current profits are $450,000. These profits are expected to grow indefinitely at a constant…

A: Current Profit = p = $450,000Growth rate = g = 3%Cost of Fund = r = 6%

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A: Cash flow speaks to the development of cash in and out of a commerce, showing its money related…

Q: Want the Correct answer from

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A: Variables in the question:Current profit=$700000Annual growth rate =3%Opportunity cost of funds=5%

Q: 7. A company that makes clutch disks had the cash flows shown below for one department with a MARR…

A: Using excel MIRR function

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.