Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Compute the present value of the following: payment 10m$ for 10 years each with a discount rate of 25% 2. Compute the future value

1. Compute the present value of the following: payment 10m$ for 10 years each with a discount rate of 25%

2. Compute the future value of a stream of cash flow: 10m$ for 5 years and with an interest rate of 20%.

3. Compute the annual payment for a mortgage (principal and debt service): 10m$ loan size, 5.3%, 30 years

4. Compute the WACC with the following assumptions: beta 1.20, cost of equity 20% and cost of debt 10% and equal weight, corporate tax 30%

5. Compute the present value of a perpetual stream of cash flow of 800.000$, growth rate 5% and WACC of 10%

6. Compute the Enterprise Value of a company with a Free Cash Flow of 10m$ for 5 years each and a WACC of 16% and a terminal value of 2bn$

7. Compute the Enterprise Value of a company with a Free Cash Flow of 1m$ for 5 years each and a WACC of 20% and a terminal value of 10m

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Finance And Public Policy

Authors: Arye L. Hillman

2nd Edition

0521738059, 978-0521738057

More Books

Students also viewed these Finance questions

Question

Decision Making in Groups Leadership in Meetings

Answered: 1 week ago