Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 13 The current FCF of company XYZ is 24 million dollars. The WACC is 11% and the FCF is expected to grow at a

image text in transcribed

Question 13

The current FCF of company XYZ is 24 million dollars. The WACC is 11% and the FCF is expected to grow at a constant rate of 5%. If XYZ has 50 million dollars short-term investment, what is the total value of XYZ?

Group of answer choices

$490 million

$470 million

$420 million

$520 million

Question 14

The projected FCF of company XYZ for the following three years are -$10 million, $20 million, and $35 million. After year 3, FCF grows at a constant rate of 5%. WACC is 11%. XYZ has short-term investments of $50 million, debt of $200 million, and preferred stock of $50 million. If XYZ has 10 million of shares, what is the stock price?

Group of answer choices

58.07

38.07

$33.07

$28.07

Question 13 1 pts The current FCF of company XYZ is 24 million dollars. The WACC is 11% and the FCF is expected to grow at a constant rate of 5%. If XYZ has 50 million dollars short-term investment, what is the total value of XYZ? $490 million $470 million $420 million $520 million Question 14 1 pts The projected FCF of company XYZ for the following three years are -$10 million, $20 million, and $35 million. After year 3, FCF grows at a constant rate of 5%. WACC is 11%. XYZ has short-term investments of $50 million, debt of $200 million, and preferred stock of $50 million. If XYZ has 10 million of shares, what is the stock price? 58.07 38.07 $33.07 O $28.07

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

Active Value Investing Making Money In Range Bound Markets

Authors: Vitaliy N. Katsenelson

1st Edition

0470053151, 978-0470053157

More Books

Students also viewed these Finance questions