Omni Consumer Products Co. is expected to generate a free cash flow (FCF) of $14,180.00 million this year (FCF-$14,190.00 million), and the FCF is expected to grow at a rate of 26.20% over the following two years (FCF and FCFs). After the third year however, the FCF is expected to grow at a constant rate of 4.26% per year, which will last forever (FCF). Assume the firm has no nonoperating assets. If Omni Consumer Products Co's weighted average cost of capital (WACC) is 12.78%, what is the current total firm value of Omni Consumer Products Co.? (Note: Round all intermediate calculations to tivo decimal places.) O $235,039.29 milion $282.047.15 million) O$42.385.81 million O$318.744.50 million Omni Consumer Products Co.'s debt has a market value of $176.279 million, and Omni Consumer Products Co. has no preferred stock. If Omni Consumer Products Co. has 225 million shares of common stock outstanding, what is Omni Consumer Products Co.'s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places) O $261.16 O $703.46 O $260.16 O $287.27

Omni Consumer Products Co. is expected to generate a free cash flow (FCF) of $14,180.00 million this year (FCF-$14,190.00 million), and the FCF is expected to grow at a rate of 26.20% over the following two years (FCF and FCFs). After the third year however, the FCF is expected to grow at a constant rate of 4.26% per year, which will last forever (FCF). Assume the firm has no nonoperating assets. If Omni Consumer Products Co's weighted average cost of capital (WACC) is 12.78%, what is the current total firm value of Omni Consumer Products Co.? (Note: Round all intermediate calculations to tivo decimal places.) O $235,039.29 milion $282.047.15 million) O$42.385.81 million O$318.744.50 million Omni Consumer Products Co.'s debt has a market value of $176.279 million, and Omni Consumer Products Co. has no preferred stock. If Omni Consumer Products Co. has 225 million shares of common stock outstanding, what is Omni Consumer Products Co.'s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places) O $261.16 O $703.46 O $260.16 O $287.27

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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Similar questions

A company expects to receive the following cash flows $2,000 for the first ten years and then $3,000 for the next ten years. The discount rate is 10.0%. What is the present value of this 20-year cash flow? 7.
Nugent Communication Corp. is investing $8,501,547 in new technologies. The company expects significant benefits in the first three years after installation (as can be seen by the following cash flows), and smaller constant benefits in each of the next four years. Year 1 2 3 4-7 Cash Flows $1,736,907 $4,841,362 $2,794,697 $1,009,125 What is the discounted payback period for the project assuming a discount rate of 10 percent?
Globex Corp. is expected to generate a free cash flow (FCF) of $145.00 million this year (FCF₁ = $145.00 million), and the FCF is expected to grow at a rate of 25.00% over the following two years (FCF2 and FCF3). After the third year, however, the FCF is expected to grow at a constant rate of 3.90% per year, which will last forever (FCF4). Assume the firm has no nonoperating assets. If Globex Corp.'s weighted average cost of capital (WACC) is 11.70%, what is the current total firm value of Globex Corp.? (Note: Round all intermediate calculations to two decimal places.) O $2,603.11 million O $3,123.73 million O $437.64 million O $3,455.59 million Globex Corp.'s debt has a market value of $1,952 million, and Globex Corp. has no preferred stock. If Globex Corp. has 375 million shares of common stock outstanding, what is Globex Corp.'s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.) O $1.74 O $0.74 $1.91
A retail coffee company is planning to open 110 new coffee outlets that are expected to generate $15.9 million in free cash flows per year, with a growth rate of 3.5% in perpetuity. If the coffee company's WACC is 9.5%, what is the NPV of this expansion? The present value of the free cash flows is $ million. (Round to two decimal places.)
The demand for a product during the next ten years will be such that revenues will be $100,000 the first year and will increase by $10,000 each year thereafter. If inflation is assumed to be 6% per yuear and the company uses 10% in its economic studies, what is the present worth of the revenues expressed in present dollars?
Allied Biscuit Co. is expected to generate a free cash flow (FCF) of $7,795.00 million this year (FCF, = $7,795.00 million), and the FCF is expected to grow at a rate of 19.00% over the following two years ( FCF, and FCF). After the third year, however, the FCF is expected to grow at a constant rate of 2.10% per year, which will last forever (FCF). Assume the firm has no nonoperating assets. If Allied Biscuit Co.'s weighted average cost of capital (WACC) is 6.30 %, what is the current total firm value of Allied Biscuit Co. ? (Note: Round all intermediate calculations to two decimal places.) $293,072.74 million $ 24,732.03 million $297,760.66 million $248, 133.88 million
A series of cash flows begins at $12,675 the first year, with an increase each year until n=10. If the interest rate is 12.675%, what is the present value when the annual increase is $1,268?

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