FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Free cash flow to firm 2019 2020 2021 2022 2023 Free cash flow to firm 27878 -12103 -14410 -9718 -14025 Net income 10000 15000 17333

image text in transcribed

image text in transcribed
Free cash flow to firm 2019 2020 2021 2022 2023 Free cash flow to firm 27878 -12103 -14410 -9718 -14025 Net income 10000 15000 17333 19667 22000 Non-cash charges 25000 26000 27000 28000 29000 Interest 878 897 923 949 975 Long-term investment 45000 44000 45333 44667 48000 Investment in working capital 8000 10000 14333 13667 18000 WACC 0.09 0.08 0.09 0.1 Expected growth rate 0.03 Firm Value -201717 -288200 -161966.6667 -200357.1429 Shares 2500 Estimated share price 11.1512 -4.8412 -5.764 -3.8872 -5.61 Free cash flow to equity 2019 2020 2021 2022 2023 Free cash flow to equity 72000 112047 122689 124000 139308 Net income 10000 15000 17333 19667 22000 Non-cash charges 25000 26000 27000 28000 29000 Interest 378 897 923 949 975 Long-term investment 45000 44000 45333 44667 48000 Changes in working capital 0 2000 4333 -666 4333 Capital expenditure 24,150 27,767 31,383 35,000 Cost of equity 0.11 0.12 0.1 0.13 Expected growth rate 0.03 Equity value 1400588 1022408 1240000 1071600 Firm value Shares 2500 Estimated share price 28.8 44.8188 49.0756 49.6 55.7232

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_2

Step: 3

blur-text-image_3

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 Public Health And Not For Profit Organizations

Financial Management For Public Health And Not For Profit Organizations

Authors: Steven A. Finkler

2nd Edition

0131471988, 978-0131471986

More Books

Students also viewed these Finance questions

Question

★★★★★
According to throughput accounting, how should performance is measured at the operational level? What advantages and disadvantages do these measures offer?

Answered: 1 week ago

Question

★★★★★
Which of the following problems are likely to be studied by a microeconomist and which by a macroeconomist? a. The rapid growth of Google b. Why unemployment in the United States fell from 2003 to...

Answered: 1 week ago

Question

★★★★★
In the year 2030, the oldest "baby boomers" (born in 1946) will be 84 years old, and the oldest "Gen-Xers" (born in 1965) will be eligible to collect Canada Pension Plan (CPP) benefits. How will this...

Answered: 1 week ago

Question

★★★★★
The common stock of Union Jack Flags is currently selling for $28 per share. The companys stock has been growing at a constant annual rate of 4 percent, and this growth is expected to continue for an...

Answered: 1 week ago

Question

★★★★★
QUESTION 61 The following balances were taken from the ADJUSTED TRIAL BALANCE f Terapin Corp. for the fiscal year ending December 31, 2003. Cash Prepaid Rent Accumulated DepreciationEquipment 5,500...

Answered: 1 week ago

Question

★★★★★
Which of the following is likely to be true about the future relationships between the tribal, federal, and state governments? Question 25 options: An increasing number of states will opt to exercise...

Answered: 1 week ago

Question

★★★★★
Question 1 (a2) What is the reaction force Dx in [N]?

Answered: 1 week ago

Question

★★★★★
1. What issues did Norway, Saudi Arabia, and the United Kingdom face as oil-dependent nations, and what strategies and measures were implemented to address them? 2. What issues did Venezuela,...

Answered: 1 week ago

Question

★★★★★
III. Optimizing Performance For the Lodi Winery, you have been asked by management to examine the data collected and analyzed in the previous modules. The mobjective is for you to help management...

Answered: 1 week ago

Question

★★★★★
The structure shown below is supported by a steel cable from point B to C. This cable has a diameter of 10mm. The Young's modulus of the cable is 20.6x1010N/m2. Determine how much the cable stretches...

Answered: 1 week ago

Question

★★★★★
In a marginal tax rate system, as tax payers make increasing amounts of money, the tax rate they pay on every extra unit of income increases incrementally as their income passes certain cutoffs (...

Answered: 1 week ago

Question

★★★★★
The following table shows worldwide sales of a certain type of cell phone and their average selling prices in 2012 and 2013. Year 2012 2013 Selling Price 375 335 Sales(millions) 968 1,184 (a) Use the...

Answered: 1 week ago

Question

★★★★★
What are the four key assumptions examined in specification analysis in the case of simple regression? bhy7

Answered: 1 week ago

Question

★★★★★
Estimating a cost function. (10 minutes) The controller of Iso-Metsa, Oy, wants you to estimate a cost function from the following two observations in a general-ledger account called Maintenance:...

Answered: 1 week ago

Question

★★★★★
Multicollinearity exists when the dependent variable and the independent variable are highly correlated Do you agree? Explain. mkiu5

Answered: 1 week ago

Previous Question Next Question