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ReMATE Incorporate expects free cash flow earnings of $9 million next year. Since the firm is...
ReMATE Incorporate expects free cash flow earnings of $8 million next year. Since the firm is...
ReMATE Incorporate expects free cash flow earnings of $8 million next year. Since the firm is mature, it only expects growth of 2% per year. The firm's copy of capital is estimated at 10%. If the firm has $3 million in excess cash and $10 million in debt, what is the enterprise value of the firm? Assume the firm has 10 million shares outstanding.
ReMATE Incorporate expects free cash flow earnings of $8 million next year. Since the firm is...
ReMATE Incorporate expects free cash flow earnings of $8 million next year. Since the firm is mature, it only expects growth of 2% per year. The firm's copy of capital is estimated at 10%. If the firm has $3 million in excess cash and $10 million in debt, what is the enterprise value of the firm? Assume the firm has 10 million shares outstanding. QUESTION 2 An asset was originally bought for $70, The IRS stated that the asset was...
Question 2 O out of 2 points REMATE Incorporate expects free cash flow earnings of $13...
Question 2 O out of 2 points REMATE Incorporate expects free cash flow earnings of $13 million next year. Since the firm is mature, it only expects growth of 3% per year. The firm's copy of capital is estimated at 6%. If the firm has $3 million in excess cash and $10 million in debt, what is the enterprise value of the firm? Assume the firm has 10 million shares outstanding. Selected Answer: 45,500,000
2. A firm currently has $10 million in debt, $40 million in cash, and 10 million...
2. A firm currently has $10 million in debt, $40 million in cash, and 10 million shares outstanding. If the present value of the firm's free cash flows is $120 million, what should be its share price? 4. If the tax rate is 40%, what are the net proceeds from selling an asset for $90,000? Assume the asset originally had a book value of $20,000. 7. ReMATE Incorporate expects free cash flow earnings of $6 million next year. Since the...
QUESTION 8 Yr FCF 14M 2 10M A firm expects the free cash flows listed above....
QUESTION 8 Yr FCF 14M 2 10M A firm expects the free cash flows listed above. After year 2, the firm expects free cash flows will continue to grow indefinitely at the industry average of 5%. The firm estimates its cost of capital to be 8%. If the firm has debt of $40 million and cash of $20 million, what is its enterprise value? Assume 10 million shares outstanding QUESTION 9 An asset with a book value of $80,000 is...
Basic Stock Valuation: Free Cash Flow Valuation Model The recognition that dividends are dependent on earnings,...
Basic Stock Valuation: Free Cash Flow Valuation Model The recognition that dividends are dependent on earnings, so a reliable dividend forecast is based on an underlying forecast of the firm's future sales, costs and capital requirements, has led to an alternative stock valuation approach, known as the free cash flow valuation model. The market value of a firm is equal to the present value of its expected future free cash flows: Market value of company FCF (1+WACC) + FCF (1+WACC)...
Yr FCF 1 6M 2 10M A firm expects the free cash flows listed above. After...
Yr FCF 1 6M 2 10M A firm expects the free cash flows listed above. After year 2, the firm expects free cash flows will continue to grow indefinitely at the industry average of 5%. The firm estimates its cost of capital to be 8%. If the firm has debt of $40 million and cash of $20 million, what is its enterprise value? Assume 10 million shares outstanding.
Yr FCF 1 8M 2 10M A firm expects the free cash flows listed above. After...
Yr FCF 1 8M 2 10M A firm expects the free cash flows listed above. After year 2, the firm expects free cash flows will continue to grow indefinitely at the industry average of 5%. The firm estimates its cost of capital to be 8%. If the firm has debt of 540 million and cash of $20 million, what is its enterprise value? Assume 10 million shares outstanding,
Omicron Technologies has $50 million in excess cash and no debt. The firm expects to generate...
Omicron Technologies has $50 million in excess cash and no debt. The firm expects to generate additional free cash flows of $40 million per year in subsequent years and will pay out these future free cash flows as regular dividends. Omicron's unlevered cost of capital is 10% and there are 10 million shares outstanding. Omicron's board is meeting to decide whether to pay out its $50 million in excess cash as a special dividend or to use it to repurchase...
Omicron Technologies has $50 million in excess cash and no debt. The firm expects to generate...
Omicron Technologies has $50 million in excess cash and no debt. The firm expects to generate additional free cash flows of $40 million per year in subsequent years and will pay out these future free cash flows as regular dividends. Omicrons unlevered cost of capital is 10% and there are 10 million shares outstanding. Omicron's board is meeting to decide whether to pay out its $50 million in excess cash as a special dividend or to use it to repurchase...
ReMATE Incorporate expects free cash flow earnings of $8 million next year. Since the firm is mature, it only expects growth of 2% per year. The firm's copy of capital is estimated at 10%. If the firm has $3 million in excess cash and $10 million in debt, what is the enterprise value of the firm? Assume the firm has 10 million shares outstanding. QUESTION 2 An asset was originally bought for $70, The IRS stated that the asset was...
Question 2 O out of 2 points REMATE Incorporate expects free cash flow earnings of $13 million next year. Since the firm is mature, it only expects growth of 3% per year. The firm's copy of capital is estimated at 6%. If the firm has $3 million in excess cash and $10 million in debt, what is the enterprise value of the firm? Assume the firm has 10 million shares outstanding. Selected Answer: 45,500,000
QUESTION 8 Yr FCF 14M 2 10M A firm expects the free cash flows listed above. After year 2, the firm expects free cash flows will continue to grow indefinitely at the industry average of 5%. The firm estimates its cost of capital to be 8%. If the firm has debt of $40 million and cash of $20 million, what is its enterprise value? Assume 10 million shares outstanding QUESTION 9 An asset with a book value of $80,000 is...
Basic Stock Valuation: Free Cash Flow Valuation Model The recognition that dividends are dependent on earnings, so a reliable dividend forecast is based on an underlying forecast of the firm's future sales, costs and capital requirements, has led to an alternative stock valuation approach, known as the free cash flow valuation model. The market value of a firm is equal to the present value of its expected future free cash flows: Market value of company FCF (1+WACC) + FCF (1+WACC)...
Yr FCF 1 8M 2 10M A firm expects the free cash flows listed above. After year 2, the firm expects free cash flows will continue to grow indefinitely at the industry average of 5%. The firm estimates its cost of capital to be 8%. If the firm has debt of 540 million and cash of $20 million, what is its enterprise value? Assume 10 million shares outstanding,
Omicron Technologies has $50 million in excess cash and no debt. The firm expects to generate additional free cash flows of $40 million per year in subsequent years and will pay out these future free cash flows as regular dividends. Omicron's unlevered cost of capital is 10% and there are 10 million shares outstanding. Omicron's board is meeting to decide whether to pay out its $50 million in excess cash as a special dividend or to use it to repurchase...
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