Homework Answers
Ans1
Terminal Value = 15 = FCF ( 1+ growth) /( Cost of capital-growth) = 40( 1+g)/(13-g)
So G = 155/55=2.82%
Stock Price is (Cash flow/Outstanding shares)* Expected Growth = (40M/10M)*2.82 = $11.28 ANSWER
Ans2
Revenue -700 Margin = 0.5*700=350 Tax =0.2*350 = 70 . So cash generated is 350-70 = 280. Cash reinvested = 0.8*280= 224
Therefore Free Cash flow = 280-224 = 56 Answer
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What's the FCFF of a company with total revenues of $700 million, operating profit margin of...
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You are asked to value Gamecocks Inc. using the relative valuation method. Gamecocks Inc.'s earnings forecast for next year (EPS (next year) is $2.44. The valuation and earnings of...
I am sorry that I have uploaded more than one question, because I still have many...
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You are asked to value Gamecocks Inc. using the relative valuation method. Gamecocks Inc.'s earnings forecast for next year (EPS (next year)) is $2.44. The valuation and earnings of comparable...
I am sorry that I have uploaded more than one question, because I still have many...
I
am sorry that I have uploaded more than one question, because I
still have many questions, but there are no more questions. I hope
you can help me answer this question. If you can only answer one
question, please do not answer this question, thank you.
1
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3
What is the free cash flow of a firm with revenues of $200 million, operating profit margin of 50%, tax rate of 20%, depreciation and amortization expense of $30 million,...
I am sorry that I have uploaded more than one question, because I still have many...
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am sorry that I have uploaded more than one question, because I
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1.
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4.
A company has announced total revenues of $200 million, gross profits of $150 million, operating income of $130 million, and net income of $60 million. What is its net...
1. 2 You are valuing Soda City Inc. It has $100 million of debt, $90 million...
1.
2
You are valuing Soda City Inc. It has $100 million of debt, $90 million of cash, and 150 million shares outstanding. You estimate its cost of capital is 13.0%. You forecast that it will generate revenues of $700 million and $800 million over the next two years. Projected operating profit margin is 20%, tax rate is 30%, reinvestment rate is 20%, and terminal exit value multiple at the end of year 2 is 15. What is your estimate...
I am sorry that I have uploaded more than one question, because I still have many...
I
am sorry that I have uploaded more than one question, because I
still have many questions, but there are no more questions. I hope
you can help me answer this question. If you can only answer one
question, please do not answer this question, thank you. and i need
to know how to slove the question, and use which function
1
2
just two questions
What is the free cash flow of a firm with revenues of $200 million,...
Question 9 Homework. Unanswered A company is projected to generate free cash flows of $40 million...
Question 9 Homework. Unanswered A company is projected to generate free cash flows of $40 million per year for the next two years, after which it is projected grow at a steady rate in perpetuity. The company's cost of capital is 13.0%. It has $20 million worth of debt and $8 million of cash. There are 10 million shares outstanding. If the appropriate terminal exit value for this company is 15, what's your estimate of the company's stock price? Round...
make sure your answer and solution is right. You are valuing Soda City Inc. It has $100 million of debt, $90 million...
make sure your answer and solution is right.
You are valuing Soda City Inc. It has $100 million of debt, $90 million of cash, and 150 million shares outstanding. You estimate its cost of capital is 13.0%. You forecast that it will generate revenues of $700 million and $800 million over the next two years. Projected operating profit margin is 20%, tax rate is 30%, reinvestment rate is 20%, and terminal exit value multiple at the end of year 2...
You are valuing Soda City Inc. It has $100 million of debt, $90 million of cash,...
You are valuing Soda City Inc. It has $100 million of debt, $90 million of cash, and 150 million shares outstanding. You estimate its cost of capital is 13.0%. You forecast that it will generate revenues of $700 million and $800 million over the next two years. Projected operating profit margin is 20%, tax rate is 30%, reinvestment rate is 20%, and terminal exit value multiple at the end of year 2 is 15. What is your estimate of its...
I know you have a rule that you can only answer one question,
but my time is running out and I still have a lot of questions to
solve. Please give me an accommodation. If you just answer one
question, please don't want to answer this question, please
don't.
1
2
3
number 3 is same question with number 1, just answer 1and 2
What's the FCFF of a company with total revenues of $700 million, operating profit margin of...
I
know you have a rule that you can only answer one question, but my
time is running out and I still have a lot of questions to solve.
Please give me an accommodation. If you just answer one question,
please don't want to answer this question, please don't.
1
2
You are asked to value Gamecocks Inc. using the relative valuation method. Gamecocks Inc.'s earnings forecast for next year (EPS (next year) is $2.44. The valuation and earnings of...
I
am sorry that I have uploaded more than one question, because I
still have many questions, but there are no more questions. I hope
you can help me answer this question. If you can only answer one
question, please do not answer this question, thank you.
1
2
3
You are asked to value Gamecocks Inc. using the relative valuation method. Gamecocks Inc.'s earnings forecast for next year (EPS (next year)) is $2.44. The valuation and earnings of comparable...
I
am sorry that I have uploaded more than one question, because I
still have many questions, but there are no more questions. I hope
you can help me answer this question. If you can only answer one
question, please do not answer this question, thank you.
1
2
3
What is the free cash flow of a firm with revenues of $200 million, operating profit margin of 50%, tax rate of 20%, depreciation and amortization expense of $30 million,...
I
am sorry that I have uploaded more than one question, because I
still have many questions, but there are no more questions. I hope
you can help me answer this question. If you can only answer one
question, please do not answer this question, thank you.
1.
2.
3.
4.
A company has announced total revenues of $200 million, gross profits of $150 million, operating income of $130 million, and net income of $60 million. What is its net...
1.
2
You are valuing Soda City Inc. It has $100 million of debt, $90 million of cash, and 150 million shares outstanding. You estimate its cost of capital is 13.0%. You forecast that it will generate revenues of $700 million and $800 million over the next two years. Projected operating profit margin is 20%, tax rate is 30%, reinvestment rate is 20%, and terminal exit value multiple at the end of year 2 is 15. What is your estimate...
I
am sorry that I have uploaded more than one question, because I
still have many questions, but there are no more questions. I hope
you can help me answer this question. If you can only answer one
question, please do not answer this question, thank you. and i need
to know how to slove the question, and use which function
1
2
just two questions
What is the free cash flow of a firm with revenues of $200 million,...
Question 9 Homework. Unanswered A company is projected to generate free cash flows of $40 million per year for the next two years, after which it is projected grow at a steady rate in perpetuity. The company's cost of capital is 13.0%. It has $20 million worth of debt and $8 million of cash. There are 10 million shares outstanding. If the appropriate terminal exit value for this company is 15, what's your estimate of the company's stock price? Round...
make sure your answer and solution is right.
You are valuing Soda City Inc. It has $100 million of debt, $90 million of cash, and 150 million shares outstanding. You estimate its cost of capital is 13.0%. You forecast that it will generate revenues of $700 million and $800 million over the next two years. Projected operating profit margin is 20%, tax rate is 30%, reinvestment rate is 20%, and terminal exit value multiple at the end of year 2...
You are valuing Soda City Inc. It has $100 million of debt, $90 million of cash, and 150 million shares outstanding. You estimate its cost of capital is 13.0%. You forecast that it will generate revenues of $700 million and $800 million over the next two years. Projected operating profit margin is 20%, tax rate is 30%, reinvestment rate is 20%, and terminal exit value multiple at the end of year 2 is 15. What is your estimate of its...
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