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5. Hyper Networks. Inc. has just reported the following numbers for the fiscal year just ended: EBIT Interest expense Pre-tax Income Taxes Capital Expenditures Depreciation
5. Hyper Networks. Inc. has just reported the following numbers for the fiscal year just ended: EBIT Interest expense Pre-tax Income Taxes Capital Expenditures Depreciation & amortization Working Capital increase (millions) $ 11,973 $ 1,756 $ 10,217 $ 2,178 $ 1,146 $ 2,351 $ 1,124 Cash Debt $ $ 11,708 25,725 Shares 5,088 a. Calculate Hyper Networks free cash flow for the year just reported. b. You expect Hyper Networks free cash flow to grow at a constant rate of 3% from this year forward. The stock has a beta of 1.32, the risk-free rate is 2.5%, and the equity risk premium is 5.5%. Using this information, what should be the value of a share of Hyper Networks stock? 5. Hyper Networks. Inc. has just reported the following numbers for the fiscal year just ended: EBIT Interest expense Pre-tax Income Taxes Capital Expenditures Depreciation & amortization Working Capital increase (millions) $ 11,973 $ 1,756 $ 10,217 $ 2,178 $ 1,146 $ 2,351 $ 1,124 Cash Debt $ $ 11,708 25,725 Shares 5,088 a. Calculate Hyper Networks free cash flow for the year just reported. b. You expect Hyper Networks free cash flow to grow at a constant rate of 3% from this year forward. The stock has a beta of 1.32, the risk-free rate is 2.5%, and the equity risk premium is 5.5%. Using this information, what should be the value of a share of Hyper Networks stock
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