Question
Seashore Corp. estimates their future free cash flows as followed: Year 1: $10,000; Year 2: $11,600; Year 3: $12,000; and they expect a 5% growth
Seashore Corp. estimates their future free cash flows as followed: Year 1: $10,000; Year 2: $11,600; Year 3: $12,000; and they expect a 5% growth rate beyond year 3. If the required rate of return is 14%:
26) What is their terminal value in Year 3?
A.) $140,000
B.) $133,333
C.) $152,000
D.) $120,293
What is a fair stock price per share of Seashore Corp. if they have $57,000 in debt and 2,400 shares outstanding?
A.) $41.93
B.) $34.58
C.) $26.37
D.) $19.22
If a seashore employee started to contribute to her 401k retirement account. She determines to deposit $200 every month and the retirement fund earns 9% APR. How much will she have in her retirement account in 40 years from now?
A.) $936,264
B.) $597,288
C.) $720,262
D.) $259,281
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