Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Would like the work shown in excel please. Labrador technologies Inc. develops and sells apps for smartphones and tablets. Since the firm plans to become

image text in transcribed

Would like the work shown in excel please.

Labrador technologies Inc. develops and sells apps for smartphones and tablets. Since the firm plans to become public soon, the board of directors have asked for your help. The firm has $2,210,979 in preferred equity and the market value of its outstanding debt equals $3,104,157. The WACC for this firm is estimated to be 9.87%. Management's forecast of FCFs is shown below; year 1 represents one year from today and so on. The company expects to grow at a 2.5% rate after Year 5. In today's dollars, What is the terminal value of this company? Round your answer to the nearest penny and enter it in the box below. Period Free Cash Flow Year 1 $1,026,007 Year 2 $1,194,049 Year 3 $1,470,354 Year 4 $2,817,281 Year 5 $3,397,477 Labrador technologies Inc. develops and sells apps for smartphones and tablets. Since the firm plans to become public soon, the board of directors have asked for your help. The firm has $2,210,979 in preferred equity and the market value of its outstanding debt equals $3,104,157. The WACC for this firm is estimated to be 9.87%. Management's forecast of FCFs is shown below; year 1 represents one year from today and so on. The company expects to grow at a 2.5% rate after Year 5. In today's dollars, What is the terminal value of this company? Round your answer to the nearest penny and enter it in the box below. Period Free Cash Flow Year 1 $1,026,007 Year 2 $1,194,049 Year 3 $1,470,354 Year 4 $2,817,281 Year 5 $3,397,477

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

Intermediate Accounting Reporting And Analysis, 2017 Update

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

2nd Edition

1337505625, 9781337505628

More Books

Students also viewed these Accounting questions