Solution2:-
Depreciation Per year =
Depreciation Per year =
Depreciation Per year = $14,000
To Calculate Book Value of Asset Today-
Book Value = Initial Cost * Depreciation Per year * 2
Book Value = $70,000 - $14,000 * 2
Book Value = $70,000 - $28,000
Book Value = $42,000
As per HOMEWORKLIB POLICY we need to answer only one question at once so please ask other as separate one.
If you have any query related to question then feel free to ask me in a comment.Thanks.
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 $9 million next year. Since the firm is mature, it only expects growth 3% per year. The firm's copy of capital is estimated at 11%. 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 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 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. 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...
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 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,
The current Free cash flow to the firm is $185 million. The interest expense to the firm is $20 million. If the tax rate is 40% and the net debt of the firm increased by $15 million, what is the estimated value of the firm if the FCFE grows at 5% and the cost of equity is 10 % ? $2,168 million В. A. $2.397 million $3,760 million $3,948 million C. D. Cache Creek Manufacturing Company is expected to pay...
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...
Question 2: A firm will make $5 in free cash flow next year and $8 in free cash flow two years from now. Then the firm’s free cash flow is expected to grow by 2% forever. The discount rate for the firm’s equity is 10%. What is a fair stock price for the firm? Question 3: You look up the firm from Question 3 above’s stock price quote on Yahoo! Finance and see the firm is trading at $96.73. Will...