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asap! Q19. A firm's next year FCF is expected to be $33.4 million. It is expected to grow indefiritety at a rate of 4%. The
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Q19. A firm's next year FCF is expected to be $33.4 million. It is expected to grow indefiritety at a rate of 4%. The firm also has $28.9 milen in marketable securities. S37 76 rnWon debt ord $62 million preferred stocks. The firm's WACC is 12% and there are 13 milion shores of ommon equity outstanding. What is the intrinsic value per shares? Q20. A Company has a WACC of ' 2% and expects a gowth rate of 4%,its current sales revenues are $1,000,000. Currently the company has an Operating Profitability and a Capital Requirements ICRo) of 25%, what is the Market Value Added (MVA) of the company at 4% growth rate? OPo) of 5% o that G21. Company Alpha has a stock price of $32.78 and EPS of $2.60. Its competitor, the Company Beta. has EPS of $3.20. Estimate the value of a share of the company Beta using this available information. firm. n stockholders Q22. A company's debt ratio is 35% and its levered Beta for this level of debt is 1.26. If the tax rate is 40%, compute the company's unlevered beta (DJ using the Homodo equation d in the Q23. The board of directors may grant stock options to managers in order to a. reduce their risk aversion b. reduce executive compensation costs c. avoid any fraud or falsification of the company's financial statements d. align the interest of managers with that of shareholders. e, none of the above e amount company's Q24. The value of the firm, when we allow for taxes, bankruptcy, and agency costs a. first declines and then ultimately rises with increasing levels of financial leverage b. first increases and then ultimately declines with increasing levels of financial leverage c. remains constant with increasing levels of financial leverage d. increases with increasing levels of financial leverage e. decreases with increasing levels of financial leverage Page 3 Page 1 4
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