1. Suppose that XYZ Corp. will generate free-cash-flows (FCF) of $200 at the end of the year. XYZ has a cost of equity capital of 10%, a cost of debt capital of 5%, a market value debt-to-equity ratio of one, and faces a 21% tax rate. Assuming that XYZ’s FCF will grow by 3% per year in the future, what is the value of XYZ Corp? Round your final answer to two decimals?
2. Suppose that XYZ Corp. will generate free-cash-flows (FCF) of $200 at the end of the year. XYZ has a cost of equity capital of 10%, a cost of debt capital of 5%, a market value debt-to-equity ratio of one, and faces a 21% tax rate. Assuming that XYZ’s FCF will grow by 3% per year in the future, and XYZ Corp. has in debt with a market value of $2000, what is the value of XYZ’s Corp. equity? Round your final answer to two decimals?
1. Suppose that XYZ Corp. will generate free-cash-flows (FCF) of $200 at the end of the...
1 Suppose that XYZ Corp. will generate free-cash-flows (FCF) of $200 at the end of the year. XYZ has a cost of equity capital of 10%, a cost of debt capital of 5%, a market value debt-to-equity ratio of one, and faces a 21% tax rate. Assuming that XYZ’s FCF will grow by 3% per year in the future, what is the value of XYZ Corp? Round your final answer to two decimals? 2 Suppose that XYZ Corp. will generate...
Suppose that XYZ Corp. will generate free-cash-flows (FCF) of $300 at the end of the year. XYZ has a cost of equity capital of 15%, a cost of debt capital of 5%, a market value debt-to-equity ratio of 0.5, and faces a 21% tax rate. Assuming that XYZ’s FCF will grow by 3% per year in the future, and XYZ Corp. has in debt with a market value of $2000, what is the value of XYZ’s Corp. equity? Round your...
Suppose that XYZ Corp. will generate free-cash-flows (FCF) of $400 at the end of the year. XYZ has a cost of equity capital of 12%, a cost of debt capital of 5%, a market value debt-to-equity ratio of 0.5, and faces a 21% tax rate. Assuming that XYZ’s FCF will grow by 3% per year in the future, what is the value of XYZ Corp? Round your final answer to two decimals?
Suppose that TXY Corp. will currently generate free-cash-flows (FCF) of $300 at the end of the year. TXY has a cost of equity capital of 20%, a market value debt-to-equity ratio of zero, and faces a 21% tax rate. Assuming that TXY's FCF will grow by 3% per year in the future, and any new debt would be risk-free and carry a 5% interest rate, what would be the value of the interest tax shields created if TXY's market value...
1. Suppose that QRY Corp. has an equity beta of 1.5. Current risk-free rates are 5% and the expected return on the market portfolio is 15%. QRY Corp has a market value debt-to-equity ratio of 0.5, debt that is rated AAA, and faces a 21% tax rate. QRY Corps debt is rate AAA and has an average maturity of 10 years. Assuming that the current market price of AAA bonds paying 5% semi-annual coupon, with 10 years maturity, and par...
Widget Corp. is expected to generate a free cash flow (FCF) of $12,370.00 million this year (FCF₁ = $12,370.00 million), and the FCF is expected to grow at a rate of 26.20% over the following two years (FCF₂ and FCF₃). After the third year, however, the FCF is expected to grow at a constant rate of 4.26% per year, which will last forever (FCF₄). Assume the firm has no nonoperating assets. If Widget Corp.’s weighted average cost of capital (WACC)...
1) Globex Corp. is expected to generate a free cash flow (FCF) of $9,640.00 million this year (FCF₁ = $9,640.00 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 Globex Corp.’s weighted average cost of capital...
Widget Corp. is expected to generate a free cash flow (FCF) of $7,555.00 million this year (FCF₁ = $7,555.00 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 Widget Corp.’s weighted average cost of capital (WACC)...
Luthor Corp. is expected to generate a free cash flow (FCF) of $14,950.00 million this year (FCF, - $14,950.00 million), and the FCF is expected to grow at a rate of 23.80% over the following two years (FCF, and FCF). After the third year, however, the FCF is expected to grow at a constant rate of 3.54% per year, which will last forever (FCF). Assume the firm has no nonoperating assets. If Luthor Corp.'s weighted average cost of capital (WACC)...
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)...