The following table shows projected free cash flows for the next three years for Care4UMed Corp., a company producing portable oxygen machines. Year 1 2 3 Free Cash Flow (Millions of dollars) 7.40 After the three year period, Care4UMed is expected to grow at a constant rate of 5% and its WACC is 12%. Care4UMed has $25 million of debt and $105 million shares of stock outstanding. According to the video, what is the formula for Care4UMed's horizon value? HV = OHV3 - OHV = - O HVA FCF x (1+g) 7.77 8.16 O Vo= O Vo= Vo FCF WACC g Care4UMed's horizon value is O Vo= FCF 1+WACC According to the video, what is the formula for the firm's value today? FCF (WACC-g) FCF (1+WACC) HV (1+WACC) FCF (1+WACC) FCF (1+WACC) + + FCF (1+WACC) FCF (1+WACC) FCF (1+WACC) million. + FCF (1+WACC) FCF (1+WACC) + HV (1+WACC) + HV3 FCF HV (1+WACC) (1+WACC)
The following table shows projected free cash flows for the next three years for Care4uMed Corp., a company producing portable oxygen machines. After the three vear period, Care4UMed is expected to grow at a constant rate of 5% and its wACC is 12%. Care4uMed has $25 million of debt and $105 million shares of stock outstanding. According to the video, what is the formula for Care4uMed's horizon value? HV3=WACCsRCF4HV3=1+WACCFCF4HV4=FCF5(1+g)HV3=(WAOCs)2PC55 CarefuMed's horizon value is million. According to the video, what is the formula for the firm's value today? V0=(1+WMC)E6V0=(1+WAO)7FCK1+(1+WAO)3FCB3+(1+WAOC)3RC5+HV2V0=(1+WNOC)1ACF1+(1+WACC)2ACS3+(1+WNC)3HCB3+(1+WNCC)3BV2 v0=(1+WACC)3.+(1+WAOC)3+(1+WACG)3+(1+WACG)4V0=(1+WAC)4BW2V0=(1+WAOG)2ACE1+(1+WAOG)3ACF1+(1+WAOG)2ACF2+HV3V0=(1+WAC)1FCR1+(1+WAC)2ACS2+(1+WACC3PC2+(1+WAC)2HV3 CarequMed's value today is miltion. According to the video, the value of equity is found as CarequMed's equity is million. According to the video, the price per share is found as CarequMed's the price per share is Step 3: Practice: Corporate Valuation Now it's time for you to practice what you've learned. The following table shows projected free cash flows for the next four years for Quick Sky Corp., a company producing wind turbines. After the four year period, Quick Sky is expected to grow at a constant rate of 5% and its WACC is 12%. Quick sky has $25 million of debt and \$105 milion shares of stock outstanding. According to the video, the price per share is found as CarequMed's the price per share is Step 3: Practice: Corporate Valuation Now it's time for you to practice what you've learned. The following table shows projected free cash flows for the next four years for Quick Sky Corp., a cornpany producing wind turbines. After the four year period, Quick Sky is expected to grow at a constant rate of 5% and its WACC is 12%. Quick Sky has $2.5 million of debt and $105 million shares of stock outstanding. Quick Siky's value today is million and the price per share today is The following table shows projected free cash flows for the next three years for Care4uMed Corp., a company producing portable oxygen machines. After the three vear period, Care4UMed is expected to grow at a constant rate of 5% and its wACC is 12%. Care4uMed has $25 million of debt and $105 million shares of stock outstanding. According to the video, what is the formula for Care4uMed's horizon value? HV3=WACCsRCF4HV3=1+WACCFCF4HV4=FCF5(1+g)HV3=(WAOCs)2PC55 CarefuMed's horizon value is million. According to the video, what is the formula for the firm's value today? V0=(1+WMC)E6V0=(1+WAO)7FCK1+(1+WAO)3FCB3+(1+WAOC)3RC5+HV2V0=(1+WNOC)1ACF1+(1+WACC)2ACS3+(1+WNC)3HCB3+(1+WNCC)3BV2 v0=(1+WACC)3.+(1+WAOC)3+(1+WACG)3+(1+WACG)4V0=(1+WAC)4BW2V0=(1+WAOG)2ACE1+(1+WAOG)3ACF1+(1+WAOG)2ACF2+HV3V0=(1+WAC)1FCR1+(1+WAC)2ACS2+(1+WACC3PC2+(1+WAC)2HV3 CarequMed's value today is miltion. According to the video, the value of equity is found as CarequMed's equity is million. According to the video, the price per share is found as CarequMed's the price per share is Step 3: Practice: Corporate Valuation Now it's time for you to practice what you've learned. The following table shows projected free cash flows for the next four years for Quick Sky Corp., a company producing wind turbines. After the four year period, Quick Sky is expected to grow at a constant rate of 5% and its WACC is 12%. Quick sky has $25 million of debt and \$105 milion shares of stock outstanding. According to the video, the price per share is found as CarequMed's the price per share is Step 3: Practice: Corporate Valuation Now it's time for you to practice what you've learned. The following table shows projected free cash flows for the next four years for Quick Sky Corp., a cornpany producing wind turbines. After the four year period, Quick Sky is expected to grow at a constant rate of 5% and its WACC is 12%. Quick Sky has $2.5 million of debt and $105 million shares of stock outstanding. Quick Siky's value today is million and the price per share today is
