Victoria Enterprises expects earnings before interest and taxes (EBIT) next year of
$ 1.4 million. Its depreciation and capital expenditures will both be
$ 291,000 and it expects its capital expenditures to always equal its depreciation. Its working capital will increase by $51,000
over the next year. Its tax rate is 30 %
If its WACC is11 %and its FCFs are expected to increase at 6 %per year in perpetuity, what is its enterprise value?
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Victoria Enterprises expects earnings before interest and taxes (EBIT) next year of $ 1.4 million. Its...
Victoria Enterprises expects earnings before interest and taxes (EBIT) next year of $2.1 million. Its depreciation and capital expenditures will both be $297,000, and it expects its capital expenditures to always equal its depreciation. Its working capital will increase by $55,000 over the next year. Its tax rate is 35%. If its WACC is 9% and its FCFs are expected to increase at 3% per year in perpetuity, what is its enterprise value? The company's enterprise value is? (Round to...
Victoria Enterprises expects earnings before interest and taxes (EBIT) next year of $2 million. Its depreciation and capital expenditures will both be $290,000, and it expects its capital expenditures to always equal its depreciation. Its working capital will increase by $46,000 over the next year. Its tax rate is 35%. If its WACC is 10% and its FCFs are expected to increase at 6% per year in perpetuity, what is its enterprise value? The company's enterprise value ound to the...
P 10-2 (similar to) : Question Help Victoria Enterprises expects earnings before interest and taxes (EBIT) next year of $2.1 million. Its depreciation and capital expenditures will both be $287,000, and it expects its capital expenditures to always equal its depreciation. Its working capital will increase by $54,000 over the next year. Its tax rate is 40%. If its WACC is 8% and its FCFs are expected to increase at 5% per year in perpetuity, what is its enterprise value?...
Need help answering this question. Thanks for the help! Victoria Enterprises expects earnings before interest and taxes (EBIT) next year of $2.4 million. Its depreciation and capital expenditures will both be $289,000, and it expects its capital expenditures to always equal its depreciation. Its working capital will increase by $47,000 over the next year. Its tax rate is 35%. If its WACC is 8% and its FCFs are expected to increase at 6% per year in perpetuity, what is its...
This year, FCF, Inc. Has earnings before interest and taxes of $10 million, depreciation expenses of $1 million, capital expenditures of $1.5 million and has increased its net working capital by $500,000. If its tax rate is 35%, what is its free cash flow?
Tropetech Inc. has an expected net operating profit after taxes, EBIT(1 – T), of $2,400 million in the coming year. In addition, the firm is expected to have net capital expenditures of $360 million, and net operating working capital (NOWC) is expected to increase by $45 million. How much free cash flow (FCF) is Tropetech Inc. expected to generate over the next year? $2,715 million $43,481 million $2,085 million $1,995 million Tropetech Inc.’s FCFs are expected to grow at a...
Tropetech Inc. has an expected net operating profit after taxes, EBIT(1 - T), of $2,400 million in the coming year. In addition, the firm is expected to have net capital expenditures of $360 million, and net operating working capital (NOWC) is expected to increase by $45 million. How much free cash flow (FCF) is Tropetech Inc. expected to generate over the next year? $43,481 million $2,085 million $2,715 million $1,995 million Tropetech Inc.'s FCFs are expected to grow at a...
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Nadia Corporation adjusts its debt so that its interest coverage (EBIT/Interest) remains constant at 3. Nadia’s EBIT next period is projected to be $15 million and this is expected to grow at 3.5% annually. Nadia expects its incremental capital expenditure in future (net of depreciation) to equal 1% of EBIT every year. Its investment in incremental net working capital is expected to be 1% of EBIT every year and it faces 40% tax rate. If the unlevered cost of capital...