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The following are excerpts from a company's balance sheet and income statement. Included also are important rates that apply to the company. begin{tabular}{|l|l|r|r|r|r|r|} hline 3
The following are excerpts from a company's balance sheet and income statement. Included also are important rates that apply to the company. \begin{tabular}{|l|l|r|r|r|r|r|} \hline 3 & & & & & \\ & & & & & \\ & & & & & \\ \hline \end{tabular} \begin{tabular}{|l|lr|} \hline 14 & \multicolumn{2}{|c|}{} \\ \hline 16 & \multicolumn{1}{|c|}{ Randall-Hecho, Incorporated: Rates } & \multicolumn{2}{l|}{ Rates } \\ \hline 17 & Interest Rate on Debt & 0.06 \\ \hline 18 & Corporate Tax Rate & 0.200 \\ \hline 19 & Sustainable Growth Rate & 0.010 \\ \hline 20 & Weighted Average Cost of Capital & 0.095 \\ \hline \end{tabular} 22 Required: Using the information in the tables above, please make the necessary cash flow calculations. Then use these projections to determine the intrinsic value of the 23 firm, the equity value, and the stock price per share. (Use cells A5 to G20 from the given information to complete this question.) Randall-Hecho, Incorporated: Firm and Equity Value Present Value of Free Cash Flow to the Firm (Intrinsic Value) Equity Value Price Per Share The following are excerpts from a company's balance sheet and income statement. Included also are important rates that apply to the company. \begin{tabular}{|l|l|r|r|r|r|r|} \hline 3 & & & & & \\ & & & & & \\ & & & & & \\ \hline \end{tabular} \begin{tabular}{|l|lr|} \hline 14 & \multicolumn{2}{|c|}{} \\ \hline 16 & \multicolumn{1}{|c|}{ Randall-Hecho, Incorporated: Rates } & \multicolumn{2}{l|}{ Rates } \\ \hline 17 & Interest Rate on Debt & 0.06 \\ \hline 18 & Corporate Tax Rate & 0.200 \\ \hline 19 & Sustainable Growth Rate & 0.010 \\ \hline 20 & Weighted Average Cost of Capital & 0.095 \\ \hline \end{tabular} 22 Required: Using the information in the tables above, please make the necessary cash flow calculations. Then use these projections to determine the intrinsic value of the 23 firm, the equity value, and the stock price per share. (Use cells A5 to G20 from the given information to complete this question.) Randall-Hecho, Incorporated: Firm and Equity Value Present Value of Free Cash Flow to the Firm (Intrinsic Value) Equity Value Price Per Share
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