Young & Liu Inc.'s free cash flow during the just-ended year (t = o) was $100 million, and FCF is expected to grow at a constant rate of 5% in the future. If the weighted average cost of capital is 15%, what is the firm's valu of operations, in millions? a. $998 Ob. $1,050 Oc$1,158 Od. $948 e. $1,103

Young & Liu Inc.'s free cash flow during the just-ended year (t = o) was $100 million, and FCF is expected to grow at a constant rate of 5% in the future. If the weighted average cost of capital is 15%, what is the firm's valu of operations, in millions? a. $998 Ob. $1,050 Oc$1,158 Od. $948 e. $1,103

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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13. The firm's free cash flow during the just-ended year (t = 0) was P 100 million, and FCF is expected to grow at a constant rate of 5% in the future. If the weighted average cost of capital is 15%, what is the firm's value of operations, in millions? a. 948 d. 1,103 c. 1,050 f. 1,987 b. 998 e. 1,158 14. The projected cash flow for the next year is P 1,000,000, and FCF is expected to grow at a constant rate of 6%. If the company's weighted average cost of capital is 12%, what is the value of its operations? b. 16,666,667 e. 2,100,000 a. 1,714,750 d. 2,000,000 с. 8,833,333 f. 8,333,333
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Assuming a firm's weighted average cost of capital is 11%, what is the net present value (NPV) of the following project? Year Net Cash Flow -$450,000 $150,000 $200,000 $350,000 0 1 2 3 $30,257 $130,257 O $103,377 $553,377
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? ○ $118,668 million $6,450 million ○ $8,730 million O $6,470 million Blur Corp.'s FCFs are expected to grow at a constant rate of 4.62% per year in the future. The market value of Blur Corp.'s outstanding debt is $31,412 million, and its preferred stocks' value is $17,451 million. Blur Corp. has 150 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 13.86%. Term Total firm value Intrinsic value of common equity Intrinsic value per share Value (Millions) Using the preceding information and the FCF you calculated in the previous question, calculate the appropriate values in this table.…
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? O $118,668 million $6,450 million O $8,730 million O $6,470 million Blur Corp.'s FCFs are expected to grow at a constant rate of 4.62% per year in the future. The market value of Blur Corp.'s outstanding debt is $31,412 million, and its preferred stocks' value is $17,451 million. Blur Corp. has 150 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 13.86%. Term Total firm value Intrinsic value of common equity Intrinsic value per share Value (Millions) Using the preceding information and the FCF you calculated in the previous question, calculate the appropriate values in this table.…
Find the profitability index (PI) for the following series of future cash flows, assuming the company’s cost of capital is 13.85 percent. The initial outlay is $328,041. Year 1: $196,585 Year 2: $165,370 Year 3: $148,695 Year 4: $188,689 Year 5: $128,457
A company’s free cash flow was just FCF0 = $4.25 million. The weighted average cost of capital is WACC = 14%, and the constant growth rate is g = 6%. What is the current value of operations?
The following are reasons for M&A except a. financial synergy b. improving company's performance c. decrease of market share d. Tax considerations Which of the following is not a source of public information of the publicly listed companies? a. Securities and Exchange Commission b. Philippine Stock Exchange c. Philippine Dealings and Exchange Corporation d. Government Official Gazette
Last year Rocco Corporation's sales were $700 million. If sales grow at 6.0% per year, how large (in millions) will they be 8 years later? a. $1,148.35 million b. $1,036.00 million c. $1,115.69 million d. $742.00 million e. $1,052.54 million
Mooradian Corporation's free cash flow during the just-ended year (t = 0) was $300 million, and its FCF is expected to grow at a constant rate of 7.5% in the future. Assume the firm has zero non-operating assets. If the weighted average cost of capital is 12.5%, what is the firm's total corporate value, in millions? a. $4,300 million b. $6,000 million c. $2,400 million d. $2,580 million e. $6,450 million
Spellbound Solutions estimated future capital investment needs aré $ 1200m, and the estimated future net income is $1200m. If the company finances itself with 40 percent debt and 60 percent equity, how much in dividends can the company afford to pay? a. $0m b. $420m c. $480m d. $720m e. $900
STARS Inc. forecasts a positive Free Cash Flow for the coming year, with FCF1 = $10,000,000, and it expects a growth rate of 20% for the next two years. After Year 3, FCF is expected to grow at a constant rate of 6% forever. The Weighted Average Cost of Capital (WACC) is 10.00%, and the company has $85,000,000 of long-term debt (the remainder is comprised of common equity) and 12.0 million shares of common stock outstanding. What is the firm's estimated intrinsic value per share of common stock? (Ch. 9) Group of answer choices 27.75 21.22 19.29 24.12 26.38

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