Question
HyperNetworks, Inc. has just reported the following numbers for the fiscal year just ended: (millions) EBIT $ 11,973 Interest expense $ 1,756 Pre-tax Income $
-
HyperNetworks, Inc. has just reported the following numbers for the fiscal year just ended:
HyperNetworks, Inc. has just reported the following numbers for the fiscal year just ended:
|
| (millions) |
| EBIT | $ 11,973 |
| Interest expense | $ 1,756 |
| Pre-tax Income | $ 10,217 |
| Taxes | $ 2,178 |
| Capital Expenditures | $ 1,146 |
| Depreciation & amortization | $ 2,351 |
| Working Capital increase | $ 1,124 |
|
|
|
| Cash | $ 11,708 |
| Debt | $ 25,725 |
|
|
|
| Shares | 5,088 |
a. Calculate HyperNetworks free cash flow for the year just reported. b. You expect HyperNetworks free cash flow to grow at a constant rate of 3% from this year forward. The stock has a beta of 1.32, the risk-free rate is 2.5%, and the equity risk premium is 5.5%. Using this information, what should be the value of a share of HyperNetworks stock?
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Focus On Personal Finance An Active Approach To Help You Develop Successful Financial Skills
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
4th Edition
0078034787, 978-0078034787
