Suppose you can estimate the free cash flow for Hoosier Electronics for the next 3 years. You predict that FCF will be $57.00, $58.00, and $61.00 million respectively. After the third year, you believe that FCF’s will grow forever at 6.00%. The firm’s WACC is 11.00%. Currently, the book value of bonds is $203.00 million, the book value of notes payable is $55.00 million, and the book value of preferred stock is $49.00 million. If the firm has 26.00 million shares of common stock outstanding, what is the equity value per share.
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Suppose you can estimate the free cash flow for Hoosier Electronics for the next 3 years....
Suppose you can estimate the free cash flow for Hoosier Electronics for the next 3 years. You predict that FCF will be $47.00, $58.00, and $60.00 million respectively. After the third year, you believe that FCF's will grow forever at 5.00%. The firm's WACC is 11.00%. Currently, the book value of bonds is $181.00 million, the book value of notes payable is $61.00 million, and the book value of preferred stock is $32.00 million. If the firm has 27.00 million...
Suppose you can estimate the free cash flow for Hoosier Electronics for the next 3 years. You predict that FCF will be $53.00, $53.00, and $60.00 million respectively. After the third year, you believe that FCF's will grow forever at 6.00%. The firm's WACC is 11.00%. Currently, the book value of bonds is $188.00 million, the book value of notes payable is $67.00 million, and the book value of preferred stock is $40.00 million. If the firm has 30.00 million...
ABC Telecom Inc. is expected to generate a free cash flow (FCF) of $1,240.00 million this year (FCF₁ = $1,240.00 million), and the FCF is expected to grow at a rate of 20.20% over the following two years (FCF₂ and FCF₃). After the third year, however, the FCF is expected to grow at a constant rate of 2.46% per year, which will last forever (FCF₄). Assume the firm has no nonoperating assets. If ABC Telecom Inc.’s weighted average cost of...
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Acme Corp. is expected to generate a free cash flow (FCF) of $2,840.00 million this year (FCF₁ = $2,840.00 million), and the FCF is expected to grow at a rate of 25.00% over the following two years (FCF₂ and FCF₃). After the third year, however, the FCF is expected to grow at a constant rate of 3.90% per year, which will last forever (FCF₄). Assume the firm has no nonoperating assets. If Acme Corp.’s weighted average cost of capital (WACC)...
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