Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

answers only plz i need help with these urgently The following table shows projected free cash flows for the next three years for Care4UMed Corp.,

answers only plz i need help with these urgently image text in transcribed
image text in transcribed
image text in transcribed
The following table shows projected free cash flows for the next three years for Care4UMed Corp., a company producing portable oxygen machines. After the three year period, Care4UMed is expected to grow at a constant rate of 5% and its wACC is 12%. Care4uMed has $25 million of debt and $105 million shares of stock outstanding. According to the video, what is the formula for CaresuMed's horizon value? HV3=(WACC2)rCC4HV3=FCF5(1+g)3HV3=wac-rrCC1HV3=1+HACFC4 Care4uMed's horizon value is mition. According to the video, what is the formula for the firm's value today? Care4UMed's horizon value is million. According to the video, what is the formula for the firm's value today? V0=(1+WACC2FCF1+(1+WACC2FCC2+(1+WACC2FCF3+HV3V0=(1+HACC)FCF1+(1+WACC)rCF2+(1+WACC2)rCF1+(1+HACC)mW1V0=titwactw0 CareduMed's value today is million. According to the video, the value of equity is found a: CaretuMed's equity is malion. According to the video, the price per share is found as Care4uMed's the price per share is Step 3i Practice: Corporate Valuation Now it's time for you to practice what you've learned. The following table shows projected free cash flows for the next four years for Quick Sky Corp, a company producing wind turbines. Free Cash Flow Now it's time for you to practice what you've learned. The following table shows projected free cash flows for the next four years for Quick Sky Corp, a company producing wind turbines. After the four year period, Quick Sky is expected to grow at a constant rate of 5% and its WACC is 12%. Quick Sky has $25 million of debt and $10S million shares of stock outstanding. Quick Sky's value today is million and the price per share today is

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

Financial Management For Nonprofit Organizations Policies And Practices

Authors: Jo Ann Hankin, John Zietlow, Alan Seidner, Tim O'Brien

3rd Edition

1119382564, 9781119382560

More Books

Students also viewed these Finance questions

Question

Did you check photos for quality and rights clearance?

Answered: 1 week ago

Question

Did you check the facts, their accuracy, and sources?

Answered: 1 week ago