Phoenix Corp. faltered in the recent recession but is recovering. Free cash flow has grown rapidly....
Phoenix Corp. faltered in the recent recession but is recovering. Free cash flow has grown rapidly. Forecasts made at the beginning of 2016 are as follows: ($ millions) 2017 2018 2019 2020 2021 Net income 1.0 3.5 6.2 6.7 7.0 Investment 1.0 2.5 2.7 2.9 2.9 Free cash flow 0 1.0 3.5 3.8 4.1 Phoenix’s recovery will be complete by 2021, and there will be no further growth in free cash flow. a. Calculate the PV of free cash flow, assuming a cost of equity of 10%. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Present value $ million b. Assume that Phoenix has 10 million shares outstanding. What is the price per share? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price per share $ c. What is Phoenix’s P/E ratio? (Do not round intermediate calculations. Round your answer to 2 decimal places.) P/E ratio
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Phoenix Corp. faltered in the recent recession but is
recovering. Free cash flow has grown rapidly....
Phoenix Corp. faltered in the recent recession but is recovering. Free cash flow has grown rapidly....
Phoenix Corp. faltered in the recent recession but is recovering. Free cash flow has grown rapidly. Forecasts made in 2016 are as follows: ($ millions) 2017 Net income 1.0 Investment 1.0 Free cash flow 0 2018 2.4 1.4 1.0 2019 4.0 1.6 2.4 2020 4.5 1.8 2.7 2021 4.8 1.8 3.0 Phoenix's recovery will be complete by 2021, and there will be no further growth in free cash flow. a. Calculate the PV of free cash flow, assuming a cost...
eBook Horizon Value of Free Cash Flows Current and projected free cash flows for Radell Global...
eBook Horizon Value of Free Cash Flows Current and projected free cash flows for Radell Global Operations are shown below. Actual 2018 $611.74 2019 $672.42 Projected 2020 $712.47 2021 $762.34 Free cash flow (millions of dollars) Growth is expected to be constant after 2020, and the weighted average cost of capital is 11.25%. What is the horizon (continuing) value at 2021 if growth from 2020 remains constant? Do not round intermediate calculations. Enter your answer in millions. For example, an...
Epsilon Corp. is evaluating an expansion of its business. The cash-flow forecasts for the project are...
Epsilon Corp. is evaluating an expansion of its business. The cash-flow forecasts for the project are as follows: Cash Flow Years r (S milions) 1-10 -250 53 The firm's existing assets have a beta o11 2. The risk-free interest rate is 3% and the expected return on the mar et portfolio is 12% what is the project's NPV Enter your answer in millions. A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your...
Value of Operations: Constant FCF Growth EMC Corporation's current free cash flow of $400,000 and is...
Value of Operations: Constant FCF Growth EMC Corporation's current free cash flow of $400,000 and is expected to grow at a constant rate of 4.5%. The weighted average cost of capital is WACC = 12%. Calculate EMC's estimated value of operations. Do not round intermediate calculations. Round your answer to the nearest dollar. Horizon Value of Free Cash Flows Current and projected free cash flows for Radell Global Operations are shown below. Actual Projected 2019 2020 2021 2022 $618.520 $679.200...
Free Cash Flow Valuation Dozier Corporation is a fast-growing supplier of office products. Analysts project the followin...
Free Cash Flow Valuation Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 3 years, after which FCF is expected to grow at a constant 5% rate. Dozier's weighted average cost of capital is WACC = 18%. Year 1 2 3 Free cash flow ($ millions) -$20 $30 $40 What is Dozier's horizon value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to...
5. Free Cash Flow Valuation Dozier Corporation is a fast-growing supplier of office products. Analysts project...
5. Free Cash Flow Valuation Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 3 years, after which FCF is expected to grow at a constant 5% rate. Dozier's weighted average cost of capital is WACC = 15%. Year 1 2 3 Free Cash Flow ($ millions) -$20 $30 $40 What is Dozier's horizon value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back...
ellook Problem Walk-Through Free Cash Flow Valuation Dozier Corporation is a fast-growing supplier of office products....
ellook Problem Walk-Through Free Cash Flow Valuation Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFS) during the next 3 years, after which FCF is expected to grow at a constant 8 % rate. Dozier's weighted average cost of capital is WACC 13 % . Year 2 3 Free cash flow ($ millions) - $20 $30 $40 a. What is Dozier's horizon value? (Hint: Find the value of all free cash flows...
Problem 7-18 Free Cash Flow Valuation Dozier Corporation is a fast-growing supplier of office products. Analysts...
Problem 7-18 Free Cash Flow Valuation Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFS) during the next 3 years, after which FCF is expected to grow at a constant 8% rate. Dozier's weighted average cost of capital is WACC – 16%. Year 1 2 3 Free cash flow ($ millions) -$20 $30 $40 a. What is Dozier's horizon value? (Hint: Find the value of all free cash flows beyond Year 3...
Problem 7-18 Free Cash Flow Valuation Dozier Corporation is a fast-growing supplier of office products. Analysts...
Problem 7-18 Free Cash Flow Valuation Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFS) during the next 3 years, after which FCF is expected to grow at a constant 8% rate. Dozier's weighted average cost of capital is WACC = 16%. Year 23 $30 $40 Free cash flow ($ millions) -$20 a. What is Dozier's horizon value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back...
eBook Problem Walk-Through Problem 7-18 Free Cash Flow Valuation Dozier Corporation is a fast-growing supplier of...
eBook Problem Walk-Through Problem 7-18 Free Cash Flow Valuation Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFS) during the next 3 years, after which FCF is expected to grow at a constant 10% rate. Dozier's weighted average cost of capital is WACC - 16%. Year Free cash flow (s millions) $20 $30 $40 a. What is Dozier's horizon value? (Hint: Find the value of all free cash flows beyond Year 3...
Phoenix Corp. faltered in the recent recession but is recovering. Free cash flow has grown rapidly. Forecasts made in 2016 are as follows: ($ millions) 2017 Net income 1.0 Investment 1.0 Free cash flow 0 2018 2.4 1.4 1.0 2019 4.0 1.6 2.4 2020 4.5 1.8 2.7 2021 4.8 1.8 3.0 Phoenix's recovery will be complete by 2021, and there will be no further growth in free cash flow. a. Calculate the PV of free cash flow, assuming a cost...
eBook Horizon Value of Free Cash Flows Current and projected free cash flows for Radell Global Operations are shown below. Actual 2018 $611.74 2019 $672.42 Projected 2020 $712.47 2021 $762.34 Free cash flow (millions of dollars) Growth is expected to be constant after 2020, and the weighted average cost of capital is 11.25%. What is the horizon (continuing) value at 2021 if growth from 2020 remains constant? Do not round intermediate calculations. Enter your answer in millions. For example, an...
Epsilon Corp. is evaluating an expansion of its business. The cash-flow forecasts for the project are as follows: Cash Flow Years r (S milions) 1-10 -250 53 The firm's existing assets have a beta o11 2. The risk-free interest rate is 3% and the expected return on the mar et portfolio is 12% what is the project's NPV Enter your answer in millions. A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your...
Value of Operations: Constant FCF Growth EMC Corporation's current free cash flow of $400,000 and is expected to grow at a constant rate of 4.5%. The weighted average cost of capital is WACC = 12%. Calculate EMC's estimated value of operations. Do not round intermediate calculations. Round your answer to the nearest dollar. Horizon Value of Free Cash Flows Current and projected free cash flows for Radell Global Operations are shown below. Actual Projected 2019 2020 2021 2022 $618.520 $679.200...
ellook Problem Walk-Through Free Cash Flow Valuation Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFS) during the next 3 years, after which FCF is expected to grow at a constant 8 % rate. Dozier's weighted average cost of capital is WACC 13 % . Year 2 3 Free cash flow ($ millions) - $20 $30 $40 a. What is Dozier's horizon value? (Hint: Find the value of all free cash flows...
Problem 7-18 Free Cash Flow Valuation Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFS) during the next 3 years, after which FCF is expected to grow at a constant 8% rate. Dozier's weighted average cost of capital is WACC – 16%. Year 1 2 3 Free cash flow ($ millions) -$20 $30 $40 a. What is Dozier's horizon value? (Hint: Find the value of all free cash flows beyond Year 3...
Problem 7-18 Free Cash Flow Valuation Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFS) during the next 3 years, after which FCF is expected to grow at a constant 8% rate. Dozier's weighted average cost of capital is WACC = 16%. Year 23 $30 $40 Free cash flow ($ millions) -$20 a. What is Dozier's horizon value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back...
eBook Problem Walk-Through Problem 7-18 Free Cash Flow Valuation Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFS) during the next 3 years, after which FCF is expected to grow at a constant 10% rate. Dozier's weighted average cost of capital is WACC - 16%. Year Free cash flow (s millions) $20 $30 $40 a. What is Dozier's horizon value? (Hint: Find the value of all free cash flows beyond Year 3...
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