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FINA2201/Final Last Name: First Name: 27: In 2018, MC Inc. has an EBIT of $125M, and $15M of depreciation. The tax oust %. The net

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FINA2201/Final Last Name: First Name: 27: In 2018, MC Inc. has an EBIT of $125M, and $15M of depreciation. The tax oust %. The net capital spending is $20M. The net working capital is $20M in 2018, and 201 7 The predicted growth rate is 10% in the next three years. Starting in the fourth the growth rate will be 5% indefinitely. The firm has $400M (market value) in debt, and . Beta of MC Inc. is 1.5. Market risk premium is 7%. Risk free rate is rate $40 100M shares outstanding 596. The WACC of the firm is 10%. Assume now is the beginning of 2019. 21. What is the adjusted cash flow from asset in 2018? (2pt) 22. What is the predicted adjusted cash flow from asset in 2019? (2pt) 23. What is the sum of the PV of the predicted adjusted cash flow from asset in 2019,2020, and 2021? (2pt) 24. What is the predicted adjusted cash flow from asset in 2022? (2pt) FINA2201/Final Last Name: First Name: 27: In 2018, MC Inc. has an EBIT of $125M, and $15M of depreciation. The tax oust %. The net capital spending is $20M. The net working capital is $20M in 2018, and 201 7 The predicted growth rate is 10% in the next three years. Starting in the fourth the growth rate will be 5% indefinitely. The firm has $400M (market value) in debt, and . Beta of MC Inc. is 1.5. Market risk premium is 7%. Risk free rate is rate $40 100M shares outstanding 596. The WACC of the firm is 10%. Assume now is the beginning of 2019. 21. What is the adjusted cash flow from asset in 2018? (2pt) 22. What is the predicted adjusted cash flow from asset in 2019? (2pt) 23. What is the sum of the PV of the predicted adjusted cash flow from asset in 2019,2020, and 2021? (2pt) 24. What is the predicted adjusted cash flow from asset in 2022? (2pt)

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