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 121

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 121

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 7P: Current and projected free cash flows for Radell Global Operations are shown here. Growth is...

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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 $360 million. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. 2024 99 million 2025 121
What is the adjusted cash flow from asset in 2018? What is the predicted adjusted cash flow from asset in 2019?
The forecast for the free cash flows for Jimi's Vinyl Records for 2023 are provided below. Assume that free cash flow is paid at the end of each year and we are at the beginning of year 2023. Because vinyl records are a niche market, Jimi forecasts his cash flow to remain constant at 2023's year-end level in perpetuity. Jimi Vinyl's WACC is 8.39%. Jimi's Vinyl Records Selected Financial Information 2022 65535 16480 12000 85000 20282 OCF Net Working Capital CAPEX Debt Shares Outstanding 2023 73450 23480 24500 85000 20282 Use this information to find Jimi's Vinyl Records share price as of the beginning of year 2023. Make your answer accurate to cents. That is, if your answer is 9.252, write 9.25. Also, do not include symbols (%,$) in your answer.
You have invested $10,000 in this ETF at the beginning of year 2020 and its year-end value was $13,600. Then what was your estimate of its daily arithmetic mean rate of return for Daily rate of return((=P¡/Po-1) in year 2020 Arithmetic Mean the year 2020? → (1) 0.1231%; (2) 0.1303%; (3) 0.1440%; (4) 0.1473; (5) 0.1512%; 4 |(6) 0.1640%; (7) 0.1682%; Daily standard deviation 1.2% # of trading days 250
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An investor is told that the following cash flow profile has a present value of $11,000 assuming that the money received at each time period is placed into an account where it earns 18% annually. For what value of X will this be true? Year Cash Flow Click here to access the TVM Factor Table calculator. $ 1 2 3 4 5 6 7 $1,300 $1,600 X X $3,000 $1,600 $400 Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is ±5.
PRESENT AND FUTURE VALUES OF A CASH FLOW STREAM An investment will pay $150 atthe end of each of the next 3 years, $250 at the end of Year 4, $300 at the end of Year 5, and$500 at the end of Year 6. If other investments of equal risk earn 11% annually, what is itspresent value? Its future value?
Calculate Internal Rate of Return to the investor based on a sale of the project at 12/31/26 using a 6.75% Cap Rate as sale value and 2% closing costs. Assume minimum $10,000 working capital at end of every year. All other cash flow is Distributable to investor.
Current and projected free cash flows for Radell Global Operations are shown below. Actual Projected 2019 2020 2021 2022 Free cash flow $603.460 $664.140 $704.187 $746.440 (millions of dollars) Growth is expected to be constant after 2021, and the weighted average cost of capital is 10.8%. What is the horizon (continuing) value at 2022 if growth from 2021 remains constant? Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to the nearest whole number.
Find the net present value (NPV) for the following series of future cash flows, assuming the company’s cost of capital is 10.19 percent. The initial outlay is $471,448. Year 1: 191,637 Year 2: 128,236 Year 3: 161,255 Year 4: 138,369 Year 5: 190,517 Round the answer to two decimal places in percentage form.
Current and projected free cash flows for Radell Global Operations are shown below. Actual Projected 2019 2020 2021 2022 Free cash flow $601.740 $662.420 $702.467 $751.560 (millions of dollars) Growth is expected to be constant after 2021, and the weighted average cost of capital is 11.05%. What is the horizon (continuing) value at 2022 if growth from 2021 remains constant? Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to the nearest whole number. $ million
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