Question
INPUTS (In Millions) Year Current Projected 0 1 2 3 4 Free cash flow -$20.0 $20.0 $90.0 $97.2 Marketable securities $ 70 Notes payable $
| INPUTS (In Millions) | Year | ||||||
| Current | Projected | ||||||
| 0 | 1 | 2 | 3 | 4 | |||
| Free cash flow | -$20.0 | $20.0 | $90.0 | $97.2 | |||
| Marketable securities | $ | 70 | |||||
| Notes payable | $ | 160 | |||||
| Long-term bonds | $ | 640 | |||||
| Preferred stock | $ | 80 | |||||
| WACC | 12.00 | % | |||||
| Number of shares of stock | 25 | ||||||
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Calculate the estimated horizon value (i.e., the value of operations at the end of the forecast period immediately after the Year-4 free cash flow). Assume growth becomes constant after Year 3. Enter your answer in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answer to two decimal places.
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Calculate the present value of the horizon value, the present value of the free cash flows, and the estimated Year-0 value of operations. Enter your answers in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answers to two decimal places.
Present value of HV Present value of FCF Value of operations -
Calculate the estimated Year-0 price per share of common equity. Round your answer to the nearest cent.
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The Limits Of Surveillance And Financial Market Failure Lessons From The Euro-Area Crisis
Authors: K. Shigehara (
1st Edition
1137471468, 1137471476, 9781137471468, 9781137471475
