Question

#76 Rusty Nails Bar & Grill reported free cash flow of $782,000.00 last year. Free cash flows are projected to grow by 2.50% annually. For the same period, the firm reported marketable securities of $9,000.00 and $750,000.00 in outstanding long-term debt. The firm's reported shareholder equity totaled $300,000.00. The firm currently has 100,000.00 common shares outstanding and the cost of capital is 14.00%. What is the intrinsic value of common equity per share for Rusty Nails Bar & Gril Answer format: Currency: Round to: 2 decimal places. #17 Sr. financial analyst, Mindy Jo, has forecasted the free cash flows of Southern Sweets to grow by 14.00% next year, 9.00% in the following year and 5.00% in the third year before leveling off to a constant growth rate of 2.00% annually. The firm's most recently reported free cash flow was $137.000.00. The firm has $3,000.00 in marketable securities, $68,000.00 in long-term debt. $15,000.00 in preferred stock, and $52,000.00 in book common equity, Southern Sweets has 40,000.00 common shares outstanding and a cost of capital of 10.00% What is the horizon (terminal) value of Southern Sweets' free cash flows as of year 32 Answer format: Currency: Round to: 2 decimal places. #18 Sr. financial analyst, Mindy Jo, has forecasted the free cash flows of Southern Sweets to grow by 14.00% next year, 9.00% in the following year and 5.00% in the third year before leveling off to a constant growth rate of 2.00% annually. The firm's most recently reported free cash flow was $137.000.00. The firm has $3,000.00 in marketable securities, $68,000.00 in long-term debt, $15,000.00 in preferred stock, and $52,000.00 in book common equity. Southern Sweets has 40,000.00 common shares outstanding and a cost of capital of 10.00%. What is the value of operations for Southern Sweets? Answer format: Currency: Round to: 2 decimal places. #19 Sr. financial analyst, Mindy Jo, has forecasted the free cash flows of Southern Sweets to grow by 14.00% next year, 9.00% in the following year and 5.00% in the third year before leveling off to a constant growth rate of 2.00% annually. The firm's most recently reported free cash flow was $137,000.00. The firm has $3,000.00 in marketable securities. $68,000.00 in long-term debt. $15,000,00 in preferred stock, and $52,000.00 in book common equity. Southern Sweets has 40,000.00 common shares outstanding and a cost of capital of 10.00%. What is the total corporate (firm) value for Southern Sweets? Answer format: Currency: Round to: 2 decimal places #20 Sr. financial analyst, Mindy Jo, has forecasted the free cash flows of Southern Sweets to grow by 14.00% next year, 9.00% in the following year and 5.00% in the third year before leveling off to a constant growth rate of 2.00% annually. The firm's most recently reported free cash flow was $137,000.00. The firm has $3,000.00 in marketable securities, 68,000.00 in long-term debt. $15,000.00 in preferred stock, and 552,000.00 in book common equity, Southern Sweets has 40,000.00 common shares outstanding and a cost of capital of 10.00% What is the intrinsic value of common equity per share for Southem Sweets? 4 B IUA E

Answer 1

16.

Value of the firm

=(782000*(1+2.50%))/(14%-2.50%)

=6970000

Intrinsic value per equity share

=(6970000+9000-750000)/100000

=62.29

the above is answer..

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