Base Hardware forecasted the following free cash flows for the next four year. If the cash flows are expected to grow by 3% a year and the discount rate is 8%, calculate its price per share today. Assume $150 million of debt and 1 million shares outstanding.   1 2 3 4 Free cash flow 500,000 1,450,000 2,130,000 2,750,000     $46.91     $39.12     $51.44     $68.70

Q: What is the current value per share?

A: The current value per share means the price of share prevailing in the market. The discount rate is…

Q: Invest $3,000 per year starting next year for 37 years earning 8% per year, what is the future…

A: Given , Annual Investment (P) = $ 3,000Annual Interest(r) = 8% i,e, 0.08No of years (n) = 37 YearsTo…

Q: Epsilon Corporation will be purchasing 2,000 shares of XYZ Corporation. Last year, annual dividends…

A: Dividend discount model It is used to calculate the value of a share. Under this model, the sum of…

Q: Assume that B Corp. net income for next year would be 500 million and its optimal capital budget for…

A: Capital budgeting is a strategic financial process aimed at evaluating and selecting long-term…

Q: Suppose you are valuing a company that is growing its free cash flows at a stable 1.6% annual rate…

A: In this problem we have to calculate present value of cash flow and find out value of equity.

Q: A company is projected to generate free cash flows of $150 million next year and $210 million at the…

A: The following steps will be followed in order to get the share value:Terminal value will be…

Q: Assume Antelope Equipment is planning on growing its sales by 25% next year. Use the first pass…

A: Pro Forma Financial StatementsPro forma financial statements are crucial for businesses planning…

Q: Conundrum Mining is expected to generate the following free cash flows over the next four years,…

A: Current share price:The term "current share price" refers to the value at which a particular stock…

Q: u have 100 million dollars in your investment account and choose to keep your money allocated in the…

A: Rebalancing a portfolio entails changing the weightings of different asset classes in your…

Q: Based on economists' forecasts and analysis, 1-year Treasury bill rates and liquidity premiums for…

A: Given details from the question:

Q: 24. You find an analyst report that was left ni a train. You read that the analyst used the…

A: Step-by-Step Calculation: 1. Given Information: Present value of PROMISE's free cash flows and…

Q: Based on economists forecasts and analysis, one-year Treasury bill rates and liquidity premiums for…

A: YTM stands for Yield to Maturity.The expected overall return of a bond or other fixed hobby safety…

Q: Beta Budget Brooms Inc. will pay a big $2 dividend next year on its common stock, which is currently…

A: The Gordon Growth Model (also known as the Dividend Discount Model) is a method used in finance to…

Q: Value of Future Cash Flows: A firm recently paid a $0.30 annual dividend. The dividend is expected…

A: Recent dividend  = $0.30 Annual growth for first 4 years = 8% Stock price after 4 years = $60…

Q: the dividend yield and capital gain yield over the first year?

A: Information Provided: Dividend growth rate = 5% Next Dividend = $3.50 Required return = 13%

Q: Dividends on CCN corporation are expected to grow at a 9% per year. Assume that the discount rate on…

A: Stock price = Next Dividend / (Discount rate - Growth )

Q: ← Colgate-Palmolive Company has just paid an annual dividend of $1.38. Analysts are predicting…

A: When the company receives profits and distributes them among the shareholders. That share of profit…

Q: ased on economists' forecasts and analysis, 1-year Treasury bill rates and liquidity premiums for…

A: The liquidity premium theory refers to the fact that the issuing company of a security that does not…

Q: isters Ltd is planning to invest in a capital project, which will generate cash inflows of $15,000…

A: We need to use WACC as discount rate to calculate present value of cash inflowsPresent value…

Q: Value a company that has current FCFo of $250,000 using a growth rate of 10% for the following 10…

A: Terminal Value is calculated by perpetual growth model. Terminal Value = Expected free cash flows/(r…

Q: Based on economists' forecasts and analysis, 1-year Treasury bill rates and liquidity premiums for…

A: The market's anticipation of future short-term interest rates plus a liquidity premium is what…

Q: A company is forecasted to generate free cash flows of $49 million for the next three years. After…

A: Given Free cash flow = $49 million Debt =$42 million Cash =$ 6 million Share outstanding = 14…

Q: 3. You are given the duty of valuing your company shares. Expected net income of the next year (year…

A: Free cash flow refers to the Future cash inflow from company's operations and business less change…

Q: what is the current rate on a four-year Treasury security?

A: Liquidity Premium Hypothesis: This theory states that the securities being short-dated, highly…