Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The assets required for the project were fully depreciated at the time of purchase. The financial staff has collected the following information on the project: Sales revenues $10 mition Operating costs 8 milion Interest expense 3 million The company has a 25% tax rate, and its WACC is 10%, Write out your answers completely. For example, 13 million should be entered as 13,000,000. What is the oroiect's operating cash flow for the first year (t=1) ? Round your answer to the nearest dollar. $ b. If this project would cannibalize other projects by 50.5 million of cash flow before taxes per year, how would this change your answer to part a? Round your answer to the nearest doliar. The firm's OCF would now be $ Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The assets required for the project were fully depreciated at the time of purchase. The financial staff has collected the following information on the project: The company has a 25% tox rate, and its WACC is 10% Write out your answers compietely. For example, 13 million should be entered as 13,000,000 . What is the oroiect's operating cash flow for the first year (t=1) ? Round your answer to the nearest dollar. s. b. If this project would carnibalize other projects by 50.5 million of cash flow before taxes per year, how would this change your answer to part a? Round your answer to the nearest dollar. The firm's OCF would now be \$ Holtzman Ciothiers's stock currently seils for $19.00 a share. It yust paid a dividend of $3.75 a share (i.e, Do =$3.75 ). The dividend is expected to grow at a constant rate of 3% a year. What stock price is expected 1 year from now? Round your answer to the nearest cont. 5 What is the required rote of return? Do not round intermediste calculations, Round your answer to two decimal places. Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The assets required for the project were fully depreciated at the time of purchase. The financial staff has collected the following information on the project: Sales revenues $10 mition Operating costs 8 milion Interest expense 3 million The company has a 25% tax rate, and its WACC is 10%, Write out your answers completely. For example, 13 million should be entered as 13,000,000. What is the oroiect's operating cash flow for the first year (t=1) ? Round your answer to the nearest dollar. $ b. If this project would cannibalize other projects by 50.5 million of cash flow before taxes per year, how would this change your answer to part a? Round your answer to the nearest doliar. The firm's OCF would now be $ Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The assets required for the project were fully depreciated at the time of purchase. The financial staff has collected the following information on the project: The company has a 25% tox rate, and its WACC is 10% Write out your answers compietely. For example, 13 million should be entered as 13,000,000 . What is the oroiect's operating cash flow for the first year (t=1) ? Round your answer to the nearest dollar. s. b. If this project would carnibalize other projects by 50.5 million of cash flow before taxes per year, how would this change your answer to part a? Round your answer to the nearest dollar. The firm's OCF would now be \$ Holtzman Ciothiers's stock currently seils for $19.00 a share. It yust paid a dividend of $3.75 a share (i.e, Do =$3.75 ). The dividend is expected to grow at a constant rate of 3% a year. What stock price is expected 1 year from now? Round your answer to the nearest cont. 5 What is the required rote of return? Do not round intermediste calculations, Round your answer to two decimal places
