Shabbona Partners expects to have free cash flows of $38,950,000 next year, and free cash flows are expected to grow at a constant rate of 3% per year. If the firm's WACC is 9% per year, what is the value of Shabbona's operations?
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Shabbona Partners expects to have
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- Praxis Corp. is expected to generate a free cash flow (FCF) of $5,670.00 million this year (FCF, = $5,670.00 million), and the FCF is expected to grow at a rate of 22.60% over the following two years (FCF, and FCF). After the third year, however, the FCF is expected to grow at a constant rate of 3.18% per year, which will last forever (FCF). Assume the firm has no nonoperating assets. If Praxis Corp.'s weighted average cost of capital (WACC) is 9.54%, what is the current total firm value of Praxis Corp.? (Note: Round all intermediate calculations to two decimal places.) $155,715.35 million O $17,453.56 million $122,645.86 million $147,175.03 million Praxis Corp.'s debt has a market value of $91,984 million, and Praxis Corp. has no preferred stock. If Praxis Corp. has 375 million shares of common stock outstanding, what is Praxis Corp.'s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.) $81.76 $80.76 $89.94 $245.29Suppose you are asked to value a small start-up company that is expected to generate a Free CashFlow of - $100 million next year, and - $50 million in the following year (year 2), before the firmturns profitable in year 3. Its first positive cash flow is equal to $2 million, and cash flows are expected to grow at a rate of 15% per year for 10 years (until year 13). Then, between year 13 and 14,the growth rate drops to 7% and stays there forever. Value the start-up company if the relevant discount rate is equal to 9%. My question is when calculating the perpetuity with a cosntant growth rate, why we muliply: 1/(1+r)^13 * E(CF_14)/0,09-0,07 Why does this make sense?A retail coffee company is planning to open 95 new coffee outlets that are expected to generate $15.5 million in free cash flows per year, with a growth rate of 3.2% in perpetuity. If the coffee company's WACC is 10.7%, what is the NPV of this expansion? The present value of the free cash flows is $ __ million ? (Round to two decimal places.)
- A company expects a constant FCF of $240 million per yearforever. If the WACC is 12%, what is the value of operations?($2,000 million)Luthor Corp. is expected to generate a free cash flow (FCF) of $6,415.00 million this year (FCF₁ = $6,415.00 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 Luthor Corp.’s weighted average cost of capital (WACC) is 11.70%, what is the current total firm value of Luthor Corp.? (Note: Round all intermediate calculations to two decimal places.) A.) $152,879.38 million B.) $115,164.84 million C.) $19,362.07 million D.) $138,197.81 million Luthor Corp.’s debt has a market value of $86,374 million, and Luthor Corp. has no preferred stock. If Luthor Corp. has 675 million shares of common stock outstanding, what is Luthor Corp.’s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to…Consider the case of Morose Otter Hydraulic Manufacturers Inc.: Morose Otter Hydraulic Manufacturers Inc. is expected to generate a free cash flow (FCF) of $210,000 this year, and the FCF is expected to grow at a rate of 18% over the following two years (FCF2 and FCF3). After the third year, however, the company's FCFS are expected to grow at a constant rate of 8% per year, which will last forever (FCF4 - ). If Morose Otter's weighted average cost of capital (WACC) is 16%, complete the following table and compute the current value of Morose Otter's operations. Round all dollar amounts to the nearest whole dollar, and assume that the firm does not have any nonoperating assets in its balance sheet and that all FCFS occur at the end of each year. Year CF PV(FCF,) FCF1 $181,034 V $184,156 ▼ $210,000 FCF2 $247,800 $292,404 V $315,796 ▼ $3,157,960 v FCF3 $187,331 FCF4 Horizon Value4- 00 $2,180,141 ▼ $3,081,485 ▼ Vop
- DeltaCo has a payout ratio of 0.6 and it reinvests the remainder of earnings in new projects. If next year's EPS (EPS1) will be $7.18, new projects have expected return of 15%, and investors require a rate of return is 10.8%, what is the present value of the firm's growth opportunities? Round your answer to the nearest penny.Demo Inc. is expected to generate a free cash flow (FCF) of $8,715.00 million this year (FCF1 = $8,715.00 million), and the FCF is expected to grow at a rate of 25.00% over the following two years (FCF2 and FCF). 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 Demo Inc.'s weighted average cost of capital (WACC) is 11.70%, what is the current total firm value of Demo Inc.? (Note: Round all intermediate calculations to two decimal places.) $156,455.46 million $26,304.04 million $207,691.99 million $187,746.55 million Demo Inc.'s debt has a market value of $117,342 million, and Demo Inc. has no preferred stock. If Demo Inc. has 600 million shares of common stock outstanding, what is Demo Inc.'s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.) $64.19 $71.71 $ 65.19 $195.57A retail coffee company is planning to open 110 new coffee outlets that are expected to generate $15.1 million in free cash flows per year, with a growth rate of 3.3% in perpetuity. If the coffee company's WACC is 9.2%, what is the NPV of this expansion? ..... The present value of the free cash flows is $ million. (Round to two decimal places.)
- Consider the case of Flying Cow Aviation Inc.: Flying Cow Aviation Inc. is expected to generate a free cash flow (FCF) of $1,180,000 this year, and the FCF is expected to grow at a rate of 14% over the following two years (FCF22 and FCF33). After the third year, however, the company’s FCFs are expected to grow at a constant rate of 6% per year, which will last forever (FCF4 - ∞4 - ∞). If Flying Cow’s weighted average cost of capital (WACC) is 12%, complete the following table and compute the current value of Flying Cow’s operations. Round all dollar amounts to the nearest whole dollar, and assume that the firm does not have any nonoperating assets in its balance sheet and that all FCFs occur at the end of each year. Year CFtt PV(FCFtt) FCF11 $1,180,000 FCF22 FCF33 FCF44 Horizon Value4- ∞4- ∞ Vopop = Flying Cow’s debt has a market value of $16,875,959, and Flying Cow has no preferred stock in its…1. Your company has developed the next great innovation in thermocouple technology. They are very excited, and the accounting department is predicting the first year's sales will be $25 million. You anticipate sales will increase each year by 15%, and you use a planning horizon of 7 years. a) If your company uses an 8% interest rate, what will the equivalent annual value of the sales be? b) What will the sales be in year 5?A retail coffee company is planning to open 110 new coffee outlets that are expected to generate $14.7 million in free cash flows per year, with a growth rate of 3.1% in perpetuity. If the coffee company's WACC is 10.4%, what is the NPV of this expansion? The present value of the free cash flows is $ million. (Round to two decimal places.)
