Drone companies are also expected to grow in terms of free cash flows at 25% per year over the next five years and at 15% over the next five years. If Amazon bought Drone Zone at its market value of 2023, what P/E multiple would it pay? What EV/EBITDA multiple? What P/FCF multiple? Year Free Cash Flow EBIDTA ($M) Net Profit ($M) Net Financial ebt ($M) 2019 -25 5 807 96 2020 -81 8 1542 101 2021 32 62 1876 139 2022 36 85 919 125 2023 58 143 2355 117
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Drone companies are also expected to grow in terms of free cash flows at 25% per year over the next five years and at 15% over the next five years.
- If Amazon bought Drone Zone at its market value of 2023, what P/E multiple would it pay? What EV/EBITDA multiple? What P/FCF multiple?
| Year | Free Cash Flow | EBIDTA ($M) | Net Profit ($M) | Net Financial ebt ($M) |
| 2019 | -25 | 5 | 807 | 96 |
| 2020 | -81 | 8 | 1542 | 101 |
| 2021 | 32 | 62 | 1876 | 139 |
| 2022 | 36 | 85 | 919 | 125 |
| 2023 | 58 | 143 | 2355 | 117 |
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- One investment plan that you can buy on 1st December 2020 promises to give you certain payment of Rs.5000 on 1st December 2022. Then the payment will grow at 10% per annum. Six such payments will be made, and the last payment will be made on 1st December 2027. a)Draw the cash flow diagram. b)What is the price you would pay to buy such a product if your required rate of return is 10% per annum?c)What is the equivalent equal annual cash flow amount if the amount is paid for 7 years (1st December 2021 to 1st December 2027) in seven equal installments instead of six growing installments?Your company is planning to purchase a new log splitter for is lawn and garden business. The new splitter has an initial investment of $180,000. It is expected to generate $25,000 of annual cash flows, provide incremental cash revenues of $150,000, and incur incremental cash expenses of $100,000 annually. What is the payback period and accounting rate of return (ARR)?The following is a four-year forecast for Torino Marine. Year 2022 2023 2024 2025 Free cash flow ($ millions) −60 81 98 120 Estimate the fair market value of Torino Marine at the end of 2021. Assume that after 2025, earnings before interest and tax will remain constant at $200 million, depreciation will equal capital expenditures in each year, and working capital will not change. Torino Marine’s weighted-average cost of capital is 13 percent and its tax rate is 20 percent. Note: Do not round intermediate calculations. Enter your answer in millions rounded to 1 decimal place. Estimate the fair market value per share of Torino Marine’s equity at the end of 2021 if the company has 45 million shares outstanding and the market value of its interest-bearing liabilities on the valuation date equals $350 million. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. I have the second question right…
- Subject:The following is a four-year forecast for Torino Marine. Year 2022 2023 2024 2025 Free cash flow ($ millions) −59 80 97 119 Estimate the fair market value of Torino Marine at the end of 2021. Assume that after 2025, earnings before interest and tax will remain constant at $200 million, depreciation will equal capital expenditures in each year, and working capital will not change. Torino Marine’s weighted-average cost of capital is 12 percent and its tax rate is 40 percent. Note: Do not round intermediate calculations. Enter your answer in millions rounded to 1 decimal place. Estimate the fair market value per share of Torino Marine’s equity at the end of 2021 if the company has 44 million shares outstanding and the market value of its interest-bearing liabilities on the valuation date equals $340 million. Note: Do not round intermediate calculations. Round your answer to 2 decimal places.The following is a four-year forecast for Torino Marine. Year 2022 2023 2024 2025 Free cash flow ($ millions) −52 73 90 112 Estimate the fair market value of Torino Marine at the end of 2021. Assume that after 2025, earnings before interest and tax will remain constant at $200 million, depreciation will equal capital expenditures in each year, and working capital will not change. Torino Marine’s weighted-average cost of capital is 10 percent and its tax rate is 30 percent. Note: Do not round intermediate calculations. Enter your answer in millions rounded to 1 decimal place. Estimate the fair market value per share of Torino Marine’s equity at the end of 2021 if the company has 37 million shares outstanding and the market value of its interest-bearing liabilities on the valuation date equals $270 million. Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
- The following is a four-year forecast for Torino Marine. Year Free cash flow ($ millions) a. Fair market value b. Fair market value per share 2022 -61 $ a. Estimate the fair market value of Torino Marine at the end of 2021. Assume that after 2025, earnings before interest and tax will remain constant at $200 million, depreciation will equal capital expenditures in each year, and working capital will not change. Torino Marine's weighted-average cost of capital is 15 percent and its tax rate is 30 percent. Note: Do not round intermediate calculations. Enter your answer in millions rounded to 1 decimal place. 6.89 2023 82 b. Estimate the fair market value per share of Torino Marine's equity at the end of 2021 if the company has 46 million shares outstanding and the market value of its interest-bearing liabilities on the valuation date equals $360 million. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. 2024 99 million 2025 121please provide well explained computated formulated answer with steps thanks million thanksThe following is a four-year forecast for Torino Marine. Year Free cash flow ($ millions) 2022 -57 a. Fair market value b. Fair market value per share 2023 78 2024 95 a. Estimate the fair market value of Torino Marine at the end of 2021. Assume that after 2025, earnings before interest and tax will remain constant at $200 million, depreciation will equal capital expenditures in each year, and working capital will not change. Torino Marine's weighted-average cost of capital is 9 percent and its tax rate is 20 percent. Note: Do not round intermediate calculations. Enter your answer in millions rounded to 1 decimal place. million 2025 117 b. Estimate the fair market value per share of Torino Marine's equity at the end of 2021 if the company has 42 million shares outstanding and the market value of its interest-bearing liabilities on the valuation date equals $320 million. Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
- A company’s sales were $250 million in 2019. If sales grow at 6% per year, how large will they be 10 years later, in 2029 (as expressed in millions)?need asap. thank youAce Investment Company is considering the purchase of the Apartment Arms project. Next year's NOI and cash flow is expected to be $2,080,000, and based on Ace's economic forecast, market supply and demand and vacancy levels appear to be in balance. As a result, NOI should increase at 4 percent each year for the foreseeable future. Ace believes that it should earn at least a 13 percent return on its investment. Required: a. Assuming the above facts, what would the estimated value for the property be now? b. What going-in cap rates should be indicated from recently sold properties that are comparable to Apartment Arms? c. What would the estimated value for the property, if the required return changes to 12 percent?