A firm's most recent free cash flow (FCFO) was $8.00 million. FCFS are expected to grow 6% a year. The firm's cost of equity is 11% and its WACC is 9%. The firm has $217.33 million in non-operating assets, $50 million in long term debt outstanding, $50 million in preferred stock, and 80 million shares outstanding. 1) What is the firm's expected value of operations today? 2) Estimate the intrinsic value of a share of the firm's stock. 3) What is the firm's expected value of operations 4 years from now?
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- A company is projected to generate free cash flows of $457 million next year, growing at a 4.4% rate until the end of year 3. After that, cash flows are expected to grow at a stable rate of 2.8%. The company's cost of capital is 10.1%. The company owes $268 million to lenders and has $24 million in cash. If it has 179 million shares outstanding, what is your estimate for its share value? Round to one decimal place.A company is projected to generate free cash flows of $329 million next year, growing at a 5.7% rate until the end of year 3. After that, cash flows are expected to grow at a stable rate of 2.1%. The company's cost of capital is 13.3%. The company owes $171 million to lenders and has $37 million in cash. If it has 114 million shares outstanding, what is your estimate for its share value? Round to one decimal place. Type your numeric answer and submitA firm expects to generate $100 million in free cash flow in a year. This free cash flow is expected to grow at a constant annual rate of 5%. The firm has a 19% cost of capital, $366 million of debt, and 20 million shares of common stock outstanding. Compute the value of the firm. (show your answers in millions - example, $10,000,000 would be entered as 10)
- A firm will have cash flows of $100 million next year, and cash flows of $112 million, $126 million, $129 million and $140 million in years 2-5. Cash flows after that will grow at a constant rate of 3%. The WACC for the firm is 13% and the firm has $300 million in debt and preferred stock combined, along with $52 million in short-term investments. If the firm has 6 million shares of stock, what is the current share price?A firm expects to generate $100 million in free cash flow in a year. This free cash flow is expected to grow at a constant annual rate of 5%. The firm has a 20% cost of capital, $300 million of debt, and 20 million shares of common stock outstanding. Compute the value of the firm's common stock (to the nearest dollar).The most recent free cash flows of a firm were $15 million. They are expected to grow at a constant rate of 5% forever. The firm has $60 million in debt, $6 million in preferred stock, and $10 million in marketable securities WACC is 10%. The firm has 10 million shares of stock outstanding. What would the market price per share for this firm be? A $23.90 B $27.10 C. $24.90 D.$26.10
- FinCorp’s free cash flow to the firm is reported as $305 million. The firm’s interest expense is $42 million. Assume the corporate tax rate is 21% and the net debt of the firm increases by $5 million. What is the market value of equity if the FCFE is projected to grow at 3% indefinitely and the cost of equity is 12%? (Round your answer to 2 decimal places.)Papermate Company is a supplier of office products. The company is expecting to grow at a constant rate of 7% over the next 3 years. The company's weighted average cost of capital is 13%. Assume that Papermate has $10 million of marketable securities, $90 million in debt and 20 million shares of common stock. The free cash flow in year 1 to 3 is given as follows: Year Free Cash Flow ($ million) 1 -$20 2 $30 1. Calculate Papermate's terminal value. 2. Calculate Papermate's value of operation. 3. What is intrinsic price per share of Papermate company? 3 $40ABC currently produces annual free cash flows of 5 billion a year. The company has long-term debt of $10 billion and Cash and Marketable Securities of $25 billion. Given that the stock currently trades in the marketplace at $50 and that there are 2 billion shares outstanding, at what rate is the market factoring in for FCF growth assuming that the stock is correctly valued and that the FCF will grow constantly next year and beyond. Use a WACC of 8% for your calculation. Secondly, assume that FCF is going to grow at 6% for the next 3 years as they introduce new products and that in year 4 and beyond the FCF will grow at 1%. What is the intrinsic values of the stock given this new information?
- You are valuing Soda City Inc. It has $129 million of debt, $79 million of cash, and 179 million shares outstanding. You estimate its cost of capital is 10.1%. You forecast that it will generate revenues of $723 million and $777 million over the next two years, after which it will grow at a stable rate in perpetuity. Projected operating profit margin is 31%, tax rate is 24%, reinvestment rate is 43%, and terminal EV/FCFF exit multiple at the end of year 2 is 11. What is your estimate of its share value? Round to one decimal place.You are valuing Soda City Inc. It has $118 million of debt, $83 million of cash, and 168 million shares outstanding. You estimate its cost of capital is 11.2%. You forecast that it will generate revenues of $714 million and $786 million over the next two years, after which it will grow at a stable rate in perpetuity. Projected operating profit margin is 27%, tax rate is 26%, reinvestment rate is 34%, and terminal EV/FCFF exit multiple at the end of year 2 is 13. What is your estimate of its share value? Round to one decimal place. Solve Using equationLance Inc's free cash flow was just $2.00 million. If the expected long-run growth rate for this company is 60%, if the weighted average cost of capital is 15.0%, Lance has $4 million in short- term investments and $4 million in debt, and 1 million shares outstanding, what is the intrinsic stock price?