Company Valuation with WACC (VO)(40 points)1. You are evaluating a project for a local private equity fund, and they have provided the data below.The value of a firm can be calculated as the sum of a series of cash flows over time, as shown in thefollowing formula.V0Where:=CFA₁(1 + WACC)¹+CFA,(1 + WACC)²+CFA(1 + WACC)³+...+CFA +V(1 + WACC)²CFAV=t+1WACC -9++1CFA is "free cash flow" or FCF.And:WACC15.67%FCF (mn $)$134g14.13%g25.69%2.65%g3 (and beyond)a) What is the value of the company under analysis? Provide the result of $000 (mn).

Step 1: Given Value for Calculation Weighted Average Cost of Capital = WACC = r = 15.67%Current Free…

Answered: Company Valuation with WACC (VO) (40…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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(b) Find the time path of capital K(t) given the following rates of net investment flow functions (i) I(t) = 10t2 +5 K(0) = 50 (ii) I(t) = 18t5 - 2 K(0) = 24 (iii) I(t) = 30t4 K(0) = 35 %3D (iv) I(t) = 23t K(0) =15
(b) Find the time path of capital K(t) given the following rates of net investment flow functions (i) I(t) = 10t12 + 5 K(0) = 50 (ii) I(t) = 18t5 - 2 K(0) = 24 (iii) I(t) = 30t4 K(0) = 35 (iv) I(1) = 23t K(0) =15 (c) For each of (i) to (iv) in b above, find the amount of capital formation over the time interval (2,5]
Capital Assets Pricing Model (CAPM) (20 points) 4. You have landed an interview with Gold & Silver Bank, and they are asking you to calculate the expected return on a series of assets they are evaluating. They provide the data below and have sent you a few additional questions. Risk-free rate 5.26% Stock Expected Return Betas ALMM 45.32% 9.2 AIR 34.10% 5.1 BLUE 61.20% 3.7 87.20% 4.5 MON Given the expected return on an asset, E(Ri), is equal to the risk-free rate, Rf, plus the risk premium. - E(R)=R₂+ [E(RM) – Rƒ] × Bi What is each stock's expected return, E(Ri)? Provide the result as x.xx%.
ne Internal rate of return For the project shown in the following table, , calculate the internal rate of return (IRR). Then indicate, for the project, the maximum cost of capital that the firm could have and still find the IRR acceptable. The project's IRR is %. (Round to two decimal places.) ts eText dia Librai Calculat Resaurce Emter vour amswer in the amswer box and then click Check Answer. ic Studiy Check Answer part memaiming Clear All Tiration Tiools > Ouestion 10 (0/1) Ouestion 11 (0/1). Question 12 (0/1) Question 9 (0/1) 5/1 Type Ihere to search insert
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Can you answer all the question 8,9,10
Please help me. Thankyou.
H1.
Calculate the HPR of the following investment, entered as a percentage (Example: if your answer is 14.5%, enter 14.5 and not 0.145) Period Cashflow 0 -14100 1 3300 2 3300 3 3100 4 2800
N3. Account can you help me with question C
A3 3b 3. We have two mutually exclusive investments with the following cash flows: Year Investment A Investment B 0 –$100 –$100 1 10 50 2 30 40 3 50 30 4 70 20 b. Calculate the NPV profile for each investment, using the discount rates of 0%, 5%, 10%, 15%, 20%, and 25%. Perform this task in an Excel spreadsheet. Cautionary note: If you use the =NPV() function in Excel to calculate the NPVs, it will provide incorrect answers. The NPV() function actually calculates the present value of all cash inflows. The NPV should be calculated as =NPV(all cash inflows) – initial cash outflow.
Hh2.

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