Intrinsic valuation.Given the following:Free cash flows: year 1: -$15m year 2: $25m year 3: $30mWACC = 10%. After 3 years, cash flows will grow at a constant 4%$15m in marketable securities, $80m in debt, and 1 million in sharescalculate:a. the horizon valueb. the current value of operationsc. the intrinsic value per share (Show all work)

To calculate the horizon value of company, we need free cash flow in 3rd years, growth rate and…

Answered: Intrinsic valuation. Given the…

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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A cutting-edge product of Continental Fan had the following net cash flow series during its first 5- year period on the market. Find all rate of return values between 0% and 100%. Year 0 1 2 3 4 5 The rate of return is %. Net Cash Flow, $ -44,000 33,000 24,000 13,000 -5,000 7,000
Use the information below to calculate WACC given the Market Capitalization of the company: Market Cap = 193.2 Million EBIT = 17.2 Million Depreciation = 4.2 Million Capital Expenditures = - 3.8 Million Change in W/C = 2.1 Million growth = 7% FCF = ? WACC = ?
Can you show me using excel calculations please?
Given that the NPV per share of the reinvestment of the retained earnings next year for a firm is $2.50. Assuming the growth of the NPV is constant at 5% each year, with the required return rate of 12%, what is the estimated Present Value of Growth Opportunity (PVGO)? a. $35.71 b. $59.23 c. $46.75 d. $24.56
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A cutting-edge product of Continental Fan had the following net cash flow series during its first 5-year period on the market. Find all rate of return values between 0% and 100%. Year Net Cash Flow, $ 0 -48,000 1 35,000 2 24,000 3 15,000 4 -3,000 5 9,000 The rate of return is %
For the net cash flow series shown, find the external rate of return using the ROIC method at an investment rate of 15% per year 4 3 2 Year S.NCF 40.21% 10,000- 50,000 90,000- 20,000 48,000 10.73% 17.12% 25.22%
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