Stay Swift Corp. has an expected net operating profit after taxes, EBIT(1 T), of $14,700 million in the coming year. In addition, the firm is expec to have net capital expenditures of $2,205 million, and net operating working capital (NOWC) is expected to increase by $45 million. How much fr cash flow (FCF) is Stay Swift Corp. expected to generate over the next year? O $12,450 million $12,540 million O $16,860 million O $248,416 million
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- The corporate valuation model, the price-to-earnings (P/E) multiple approach, and the economic value added (EVA) approach are some examples of valuation techniques. The corporate valuation model is similar to the dividend-based valuation that you’ve done in previous problems, but it focuses on a firm’s free cash flows (FCFs) instead of its dividends. Some firms don’t pay dividends, or their dividends are difficult to forecast. For that reason, some analysts use the corporate valuation model. Charles Underwood Agency Inc. has an expected net operating profit after taxes, EBIT(1 – T), of $17,400 million in the coming year. In addition, the firm is expected to have net capital expenditures of $2,610 million, and net operating working capital (NOWC) is expected to increase by $30 million. How much free cash flow (FCF) is Charles Underwood Agency Inc. expected to generate over the next year? $14,820 million $19,980 million $321,693 million $14,760 million…The corporate valuation model, the price-to-earnings (P/E) multiple approach, and the economic value added (EVA) approach are some examples of valuation techniques. The corporate valuation model is similar to the dividend-based valuation that you've done in previous problems, but it focuses on a firm's free cash flows (FCFS) instead of its dividends. Some firms don't pay dividends, or their dividends are difficult to forecast. For that reason, some analysts use the corporate valuation model. Spandust Industries Inc. has an expected net operating profit after taxes, EBIT(1 - T), of $14,600 million in the coming year. In addition, the firm is expected to have net capital expenditures of $2,190 million, and net operating working capital (NOWC) is expected to increase by $10 million. How much free cash flow (FCF) is Spandust Industries Inc. expected to generate over the next year? O $12,420 million $16,780 million $12,400 million O $297,740 million Spandust Industries Inc.'s FCFS are…The corporate valuation model, the price-to-earnings (P/E) multiple approach, and the economic value added (EVA) approach are some examples of valuation techniques. The corporate valuation model is similar to the dividend-based valuation that you've done in previous problems, but it focuses on a firm's free cash flows (FCFS) instead of its dividends. Some firms don't pay dividends, or their dividends are difficult to forecast. For that reason, some analysts use the corporate valuation model. Tropetech Inc. has an expected net operating profit after taxes, EBIT(1-T), of $2,400 million in the coming year. In addition, the firm is expected to have net capital expenditures of $360 million, and net operating working capital (NOWC) is expected to increase by $45 million. How much free cash flow ( FCF) is Tropetech Inc. expected to generate over the next year? $2,085 million $2,715 million $43,481 million $1,995 million Tropetech Inc.'s FCFs are expected to grow at a constant rate of 3.90%…
- The corporate valuation model, the price-to-earnings (P/E) multiple approach, and the economic value-added (EVA) approach are some examples of valuation techniques. The corporate valuation model is similar to the dividend-based valuation that you've done in previous problems, but it focuses on a firm's free cash flows (FCFS) instead of its dividends. Some firms don't pay dividends, or their dividends are difficult to forecast. For that reason, some analysts use the corporate valuation model Blur Corp. has an expected net operating profit after taxes, EBIT(1 - T), of $11,200 million in the coming year. In addition, the firm is expected to have net capital expenditures of $1,680 million, and net operating working capital (NOWC) is expected to increase by $20 million. How much free cash flow (FCF) is Blur Corp. expected to generate over the next year? $9,540 million $174,783 million $12,860 million $9,500 million Blur Corp.'s FCFs are expected to grow at a constant rate of 4.62% per year…Corporate valuation model The corporate valuation model, the price-to-earnings (P/E) multiple approach, and the economic value added (EVA) approach are some examples of valuation techniques. The corporate valuation model is similar to the dividend-based valuation that you’ve done in previous problems, but it focuses on a firm’s free cash flows (FCFs) instead of its dividends. Some firms don’t pay dividends, or their dividends are difficult to forecast. For that reason, some analysts use the corporate valuation model. Tropetech Inc. has an expected net operating profit after taxes, EBIT(1 – T), of $2,400 million in the coming year. In addition, the firm is expected to have net capital expenditures of $360 million, and net operating working capital (NOWC) is expected to increase by $45 million. How much free cash flow (FCF) is Tropetech Inc. expected to generate over the next year? $1,995 million $2,715 million $43,481 million $2,085 million…10. Corporate valuation model The corporate valuation model, the price-to-earnings (P/E) multiple approach, and the economic value added (EVA) approach are some examples of valuation techniques. The corporate valuation model is similar to the dividend-based valuation that you’ve done in previous problems, but it focuses on a firm’s free cash flows (FCFs) instead of its dividends. Some firms don’t pay dividends, or their dividends are difficult to forecast. For that reason, some analysts use the corporate valuation model. Blur Corp. has an expected net operating profit after taxes, EBIT(1 – T), of $7,600 million in the coming year. In addition, the firm is expected to have net capital expenditures of $1,140 million, and net operating working capital (NOWC) is expected to increase by $10 million. How much free cash flow (FCF) is Blur Corp. expected to generate over the next year? $8,730 million $6,450 million $118,668 million $6,470 million…
- 10. Corporate valuation model The corporate valuation model, the price-to-earnings (P/E) multiple approach, and the economic value added (EVA) approach are some examples of valuation techniques. The corporate valuation model is similar to the dividend-based valuation that you've done in previous problems, but it focuses on a firm's free cash flows (FCFS) instead of its dividends. Some firms don't pay dividends, or their dividends are difficult to forecast. For that reason, some analysts use the corporate valuation model. Stay Swift Corp. has an expected net operating profit after taxes, EBIT(1 - T), of $14,700 million in the coming year. In addition, the firm is expected to have net capital expenditures of $2,205 million, and net operating working capital (NOWC) is expected to increase by $45 million. How much free cash flow (FCF) is Stay Swift Corp. expected to generate over the next year? $12,450 million O $12,540 million $16,860 million $248,416 million Stay Swift Corp.'s FCFs are…Which of the following statements is NOT CORRECT? why? The corporate valuation model can be used both for companies that pay dividends and those that do not pay dividends. The corporate valuation model discounts free cash flows to the firm (FCFF) by the required return on equity. The corporate valuation model can be used to find the value of a division. Free cash flows are assumed to grow at a constant rate beyond a specified date in order to find the horizon, or terminal, value.5. An optimal dividend policy is one that takes into consideration that:a) Dividends should only be distributed based on the profits of the last period.b) Dividends can be distributed even if the company recorded losses in the last period.c) The balance between current dividends and future growth is achieved, maximizing the value of the company.d) It manages to attract investors who have a predilection for relatively high risks.
- If you want to value a firm that consistently pays out its earnings as dividends, the simplest model for you to use is the A) total payout method. B)valuation based on comparable firms. C) dividend-discount model. D) discounted free cash flow model.Which one of the followings is incorrect regarding to cost of equity: On average, it is higher than cost of debt. It moves in the same direction with tax rates. It is affected by return on market portfolio. For a dividend paying company, it is sensitive to growth expectations for future dividends. It is highly dependent on risk level of the firm and growth rate. For calculating cost of equity, we can rely on dividend growth model or SML approach. Both models might suffer from the assumption that past is a good predictor of future. True False Percy's Wholesale Supply has earnings before interest and taxes of €106,000. Both the book and the market value of debt is €170,000. The unlevered cost of equity is 15.5 per cent while the pre-tax cost of debt is 8.6 per cent. The tax rate is 28 per cent. What is the firm's weighted average cost of capital? Show your steps.When we compute the EV/EBITDA multiple, i.e. the ratio of Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization, we estimate the enterprise value of a firm by adding the values of debt and equity and netting out cash. Could you provide a reason for netting out cash? O a. Cash can be used to pay down debt. O b. Cash is easy to value. O c. None of the given answers is correct. The income from cash is not part of EBITDA. Cash is liquid. O d. O e.