Question
Ocean & Desert Industries has the following data. The discount rate is 12%. Terminal value is 3 times the 2013 FCF. Cash and debt are
Ocean & Desert Industries has the following data. The discount rate is 12%. Terminal value is 3 times the 2013 FCF. Cash and debt are constant. Debt refers to interest-bearing liabilities. Calculate the 2010 equity value. Round your answer to the nearest dollar and show your work.
| Years | 2010 historical | 2011 forecast | 2012 forecast | 2013 forecast |
| Free Cash Flow | 105 | 128 | 134 |
Cash 47
Debt 230
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M: Finance
Authors: Marcia Cornett, Troy Adair, John Nofsinger
5th Edition
1260772357, 9781260772357
