Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

MUST BE ANSWERED USING EXCEL!!! I will happily up vote if the answer is detailed and ONLY IF IT IS DONE USING EXCEL!!!! Please explain

MUST BE ANSWERED USING EXCEL!!! I will happily up vote if the answer is detailed and ONLY IF IT IS DONE USING EXCEL!!!! Please explain if possible.

image text in transcribed

9. Phoenix Corp. faltered in the recent recession but is recovering. Free cash flow has grown rapidly. Forecasts made in 2019 are as follows: (5 millions) 2020 2021 2022 2023 2024 Net income 1.0 2.5 4.2 4.70 5.0 Investment 1.0 1.5 1.7 1.9 1.9 Free cash flow 0 1.0 2.5 2.8 3.1 Phoenix's recovery will be complete by 2024, and there will be no further growth in net income or free cash flow. a) Calculate the PV of free cash flow, assuming a cost of equity of 10%. b) Assume that Phoenix has 12 million shares outstanding. What is the price per share

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

Step: 3

blur-text-image

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

Entrepreneurial Financial Management An Applied Approach

Authors: Jeffrey R Cornwall, David O Vang, Jean M Hartman

5th Edition

0367335417, 978-0367335410

More Books

Students also viewed these Finance questions