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New Milleni um Company eamed $2.4 million in net income last year. It took depreciation deductions...
New Millenium Company earned $2.5 milion in net income last year. It took depreciation deductions of...
New Millenium Company earned $2.5 milion in net income last year. It took depreciation deductions of $300,000 and made new investments in working capital and fixed assets of $100.000 and $350,000, respectively. a. What was New Millenium's free cash flow last year? b. Suppose that the company's free cash flow is expected to grow at 5% per year forever. If investors require a return of 8% on Millenium stock, what is the present value of Millenium's future free cash flows?...
New Millenium Company earned $2.2 million in net income last year. It took depreciation deductions of...
New Millenium Company earned $2.2 million in net income last year. It took depreciation deductions of $299,000 and made new investments in working capital and fixed assets of $104,000 and $345,000 respectively. a. What was New Millenium's free cash flow last year? b. Suppose that the company's free cash flow is expected to grow at 4% per year forever. If investors require a return of 7% on Millenium stock, what is the present value of Millenium's future free cash flows?...
20 Lansing Corporation reported net income of $67 million for last year. Depreciation expense totaled $15...
20 Lansing Corporation reported net income of $67 million for last year. Depreciation expense totaled $15 million and capital expenditures came to $6 million. Free cash flow is expected to grow at a rate of 4.2% for the foreseeable future. Lansing faces a 40% tax rate and has a 0.36 debt to equity ratio with $250 million (market value) in debt outstanding. Lansing's equity beta is 1.92, the risk-free rate is currently 5% and the market risk premium is estimated...
Mack Industries' free cash flow last year was $1 million (i.e., FCF0 = $1 million). You...
Mack Industries' free cash flow last year was $1 million (i.e., FCF0 = $1 million). You project the company's free cash flow to grow 20% this year (i.e., FCF1 = $1.2 million) and 15% next year. After two years its free cash flow is expected to grow at a constant rate of 5%. The cost of capital is 12%. What is the company's present value of operations (VOP)? A. $12.23 million B. $18.67 million C. $16.65 million D. $16.91 million
Last year Miami Rivet had $5 million in operating income (EBIT). Its depreciation expense was $1...
Last year Miami Rivet had $5 million in operating income (EBIT). Its depreciation expense was $1 million, its interest expense was $1 million, and its corporate tax rate was 25%. At year-end, it had $14 million in operating current assets, $3 million in accounts payable, $1 million in accruals, $2 million in notes payable, and $15 million in net plant and equipment. Assume Miami Rivet has no excess cash. Miami Rivet uses only debt and common equity to fund its...
Last year Miami Rivets had S6 million in operating income (EBIT). Its depreciation expense was $1...
Last year Miami Rivets had S6 million in operating income (EBIT). Its depreciation expense was $1 million, its interest expense was $1 min, and its corporate tax rate was 30%. At year-end, it had $15 million in current assts, $4 million in accounts payable, $1 million in accruals, $2 million in notes payable, and $16 million in net plant and equipment. Miami Rivets uses only debt and common equity to fund its operations. (In other words, Miami Rivets has no...
3. A company forecasts free cash flow in one year to be -$80 million and free...
3. A company forecasts free cash flow in one year to be -$80 million and free cash flow in two years to be $200 After the second year, free cash flow will grow at a constant rate of 6 percent per year forever. If the overall cost of capital is 14 percent, what is: a. The horizon value? b. The current value of operations? . The value of company's operations is $400 million. The company's balance sheet shows $20 million...
(Dividend payout ratio) Simpson Energy earned $ 2.3 million in net income last year and for...
(Dividend payout ratio) Simpson Energy earned $ 2.3 million in net income last year and for the first time ever paid its common stockholders a cash dividend of $ 0.08 per share. The firm has 9.4 million shares outstanding. What was Simpson's dividend payout ratio? Simpson's dividend payout ratio was _______% (Round to two decimal places) (Cost of preferred stock) The preferred stock of Texas Southern Power Company sells for $39 and pays $8 in dividends. The net price of...
sorry accidently posted 2 photos. A company's weighted average cost of capital is 9.6% per year...
sorry accidently posted 2 photos.
A company's weighted average cost of capital is 9.6% per year and the market value of its debt is $43.1 million. The company's free cash flow next year (FCF1) is expected to be $5.1 million and the free cash flow is expected to grow forever at a rate of 4.0% per year. If the company has 3 million shares of common stock outstanding, what is the intrinsic value per share? OA) $16 OB) $15 OC)...
The common stock of KRJ Enterprises is currently selling for $38.76 per share. Last year the...
The common stock of KRJ Enterprises is currently selling for $38.76 per share. Last year the company reported net income of $359 million. Included on its income statement was total depreciation expense of $54 million. There were 200 million shares of common stock outstanding. Using the proxy for cash flow, what is the company's price/cash flow ratio? Present your answer to two decimal places. e.g. 20.00.
New Millenium Company earned $2.5 milion in net income last year. It took depreciation deductions of $300,000 and made new investments in working capital and fixed assets of $100.000 and $350,000, respectively. a. What was New Millenium's free cash flow last year? b. Suppose that the company's free cash flow is expected to grow at 5% per year forever. If investors require a return of 8% on Millenium stock, what is the present value of Millenium's future free cash flows?...
Last year Miami Rivets had S6 million in operating income (EBIT). Its depreciation expense was $1 million, its interest expense was $1 min, and its corporate tax rate was 30%. At year-end, it had $15 million in current assts, $4 million in accounts payable, $1 million in accruals, $2 million in notes payable, and $16 million in net plant and equipment. Miami Rivets uses only debt and common equity to fund its operations. (In other words, Miami Rivets has no...
3. A company forecasts free cash flow in one year to be -$80 million and free cash flow in two years to be $200 After the second year, free cash flow will grow at a constant rate of 6 percent per year forever. If the overall cost of capital is 14 percent, what is: a. The horizon value? b. The current value of operations? . The value of company's operations is $400 million. The company's balance sheet shows $20 million...
sorry accidently posted 2 photos.
A company's weighted average cost of capital is 9.6% per year and the market value of its debt is $43.1 million. The company's free cash flow next year (FCF1) is expected to be $5.1 million and the free cash flow is expected to grow forever at a rate of 4.0% per year. If the company has 3 million shares of common stock outstanding, what is the intrinsic value per share? OA) $16 OB) $15 OC)...
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