Part 18:
Answer: $1849 million
Given that the free cash flow to firm (FCFF) is $145
million
Weighted average cost of capital (WACC) is 10%
Growth rate is 2%
Value of the firm =(Cash flow)*(1+ Growth rate)/(WACC-Growth
rate)
On substituting the values, we get;
Value of the firm =(145)*(1+2%)/(10%-2%)
=147.9/0.08
=1848.75 or 1849 (Rounded to the nearest whole number)
Part 19:
Answer: $1450 million
Given that the free cash flow to firm (FCFF) is $145 million
Weighted average cost of capital (WACC) is 10%
Growth rate is 0%
Value of the firm =(Cash flow)*(1+ Growth rate)/(WACC-Growth
rate)
On substituting the values, we get;
Value of the firm =(145)*(1+0%)/(10%-0%)
=1450
18 5 points You are trying to estimate the value of the XYZ Inc. company, as...
18 5 points You are trying to estimate the value of the XYZ Inc. company, as of the end of 2018. The after-tax cashflow from assets (FCFF) for the year ending 2018 is $145 million. The estimated WACC is 10%. What comes closest to the current value of the firm XYZ if the cashflow from assets are expected to grow at a constant rate of 2% in the future? O 0 0 0 0 1849 million 1479 million 2113 million...
You are trying to estimate the value of the Smoothie company. The expected after-tax cashflows from assets for the next three years are $250m, $350m, and $500m, respectively. The cash flows are expected to grow at 3% thereafter forever. The estimated WACC is 9%. What is the value of the Smoothie company.?
Please answer both. Thank you. Question 3 8.54 pts Marcellus wants to estimate the intrinsic value of Darlington Inc's common stock. Free cash flow (FCFy) for this year is expected to be $13.25 million, and it is expected to grow at a constant rate of 2.50% a year thereafter. The company's WACC is 12.75%, it has $25.0 million of long-term debt plus preferred stock outstanding, and there are 1.5 million shares of common stock outstanding. Assume the value of any...
QUESTION 27 You must estimate the intrinsic value of Lowell Technologies' stock. The end-of-year free cash flow (FCF1) is expected to be $30 million, and it is expected to grow at a constant rate of 5.0% a year thereafter. The company's WACC is 8.0%, it has $200 million of long-term debt, and there are 20.0 million shares of common stock outstanding. What is the firm's estimated intrinsic value per share of common stock? $34.00 0 $36.00 0 $38.00 0 $40.00...
You are trying to value ListoFact, a data processing company. The company generated $1 billion in revenues in the most recent financial year and expects revenues to grow 3% per year in perpetuity. It generated $30 million in after-tax operating income in the most recent financial year and expects after-tax operating margin to increase 1% per year starting from the current year (Year 0) to year 3. After year 3, the margin will stabilize at year 3 levels forever. The...