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Problem 7-06 Value of Operations: Constant Growth EMC Corporation has never paid a dividend. Its current free cash flow of $530,000 is expected to grow

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Problem 7-06 Value of Operations: Constant Growth EMC Corporation has never paid a dividend. Its current free cash flow of $530,000 is expected to grow at a constant rate of 4,4%. The weighted average cost of capital is WACC =11%. Calculate EMCs estimated value of operations. Plound your answer to the nearest dollar. Problem 7-07 Horizon Value of Free Cash Flows Current and projected free cash flows for Radell Global Operations are shown below. Growth is expected to be constant after 2018, and the weighted average cost of copital is 10.8\%. What is the horizon (continuing) vaiue at 2019 if growth from 2018 remains constant? Round your answer to the nearest dollar. Do not round intermediate calculations. Problem 7-17 Value of Operations Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the next 2 years, respectively; after the second year, FCF is expected to grow at a constant rate of 7%. The company's weighted average cost of capital is 13%. a. What is the terminal, or horizon, value of operations? (Hint: Find the value of all free cash flows beyond Year 2 discounted back to Year 2.) Round your answer to the nearest cent. b. Calculate the value of Kendra's operations. Round your answer to the nearest cent, Do not round intermediate calculations. ree Cash How Valuation Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 3 years, after which FCF is expected to grow at a constant 8% rate. Dozier's weighted average cost of capital is WACC =14%. a. What is Dozier's horizon value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3 .) Round your answer to two decimal places. million b. What is the current value of operations for Derier? Do not round intermediate calculations. Round your answer to two decimal places. milition c. Suppose Dorter has $10 million in marketable securities, $100 million in debt, and 10 milion shares of stock. What is the intrinsic price per share? Oo not round intermediate calculations, Round your answer to the nearest cent

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