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Please solve. 1. A company is projected to generate free cash flows of $193 million per year for the next 3 years (FCFF1, FCFF2 and

Please solve.

1. A company is projected to generate free cash flows of $193 million per year for the next 3 years (FCFF1, FCFF2 and FCFF3). Thereafter, the cash flows are expected to grow at a 1.6% rate in perpetuity. The company's cost of capital is 11.6%. What is your estimate for its enterprise value? Answer in millions, rounded to one decimal place (e.g., $213,456,789 = 213.5).

2. A company is projected to generate free cash flows of $486 million next year, growing at a 4.1% rate until the end of year 3. After that, cash flows are expected to grow at a stable rate of 2.9%. The company's cost of capital is 9.4%. The company owes $289 million to lenders and has $21 million in cash. If it has 193 million shares outstanding, what is your estimate for its share value? Round to one decimal place.

3. A company had total revenues of $146 million, operating profit margin of 16%, and depreciation and amortization expense of $19 million over the trailing twelve months. The company currently has $31 million in total debt and $15 million in cash and cash equivalents. If the company's market capitalization (market value of its equity) is $507 million, what is its EV/EBITDA ratio? Round to one decimal place.

4. You are trying to value a company using the relative valuation approach. Suppose comparable companies are trading at an average trailing EV/EBITDA multiple of 9.6. The company you are valuing generated an EBITDA of $207 million over the last twelve months, has $579 million of debt, $32 million in cash, and 19 million shares outstanding. What is the company's implied share value? Round to one decimal place.

5. Frank Martin Inc. has earned $3.93 per share in the past year and is forecasted to earn $4.07 per share next year. Comparable companies are trading at a trailing P/E ratio of 28.9. What is the implied value of Frank Martin Inc.'s shares using relative valuation? Round to one decimal place.

6. A company is projected to generate free cash flows of $178 million next year and $191 million at the end of year 2, after which it is projected grow at a steady rate in perpetuity. The company's cost of capital is 13.6%. It has $107 million worth of debt and $77 million of cash. There are 21 million shares outstanding. If the terminal EV/FCFF exit multiple at the end of year 2 is 7.7, what's your estimate of the company's share value? Round to one decimal place.

7. You are valuing Soda City Inc. It has $146 million of debt, $71 million of cash, and 196 million shares outstanding. You estimate its cost of capital is 8.4%. You forecast that it will generate revenues of $737 million and $763 million over the next two years, after which it will grow at a stable rate in perpetuity. Projected operating profit margin is 39%, tax rate is 21%, reinvestment rate is 57%, and terminal EV/FCFF exit multiple at the end of year 2 is 9. What is your estimate of its share value? Round to one decimal place.

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