Question
Hello, how may I find the working out for: 1. A firm has an expected free cash flow of $2,176,145 by the end of 2018
Hello, how may I find the working out for:
1.
A firm has an expected free cash flow of $2,176,145 by the end of 2018 that is expected to be constant at this level beyond this year forever. If its cost of capital is 9%, what is the value of this firm by the end of 2018?
2.
A project has an initial cost of $1,000,000 and is expected to last for 2 years. In year 1, depreciation charge will be $100,000 and earnings are expected to be $193,753. In year 2, depreciation will be $100,000 and earnings are expected to be $219,377. Assume the required return is 10%. What is the value of this project?
3.
A stock trades for $90 has a book value per share of $25, analysts' EPS forecast for year 1 is $15. The required return is 13%. What is the speculative value implied by the observed market price?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started