Dinklage International does not pay a common dividend. Dinklage’s growth rate for Cash Flow from Assets (CFFA) is estimated to be 5.00%. Dinklage’s CFFA for 2018 was $23.1525 million. Dinklage’s WACC is known to be 9.50%. Dinklage’s balance sheet includes $26.4 million in Marketable Securities and $130.0 million in non-operating long-term assets. The firm currently carries $44.0 million in short-term debt, $160.0 million in long-term debt, and $22.0 million in preferred equity. There are currently 10 million shares of Dinklage’s common stock outstanding. Use the data above to calculate the value of Dinklage’s operations as of the end of 2018. Calculate the value (in millions of dollars) to three decimal places (4,352,950 = 4.353)

The management of Sheffield Inc. is trying to decide whether it can increase its dividend. During the current year it reported net income of $871,300. It had net operating activities of $644,000 paid cash dividendes of $80,000 and had capital expenditures of $278,200. Compute the companys free cash flow

BHP Billiton, an Australian company, just paid $0.85 as a dividend, which is expected to grow at 5.0 per cent. Its most recent stock price is $72. Further, the company has a debt issue outstanding with 23 years to maturity that is quoted at 60 per cent of face value. The issue makes semiannual payments and has an embedded cost of 6 per cent annually. It considers a debt-equity ratio of 0.60 and a 22 per cent corporate tax rate. This year, the company has an EBIT of $3.15 million. Depreciation, the increase in net working capital, and capital spending were $265,000, $105,000, and $495,000, respectively. Therefore, you expect that over the next five years, EBIT will grow at 15 per cent per year, depreciation and capital spending will grow at 20 per cent per year, and NWC will grow at 10 per cent per year. It also has $19.5 million in debt and 400,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 3.50 per cent indefinitely. Answer the…

Kirby Enterprises’s stock is currently selling for $32.45 per share, and the firm expects its per-share dividend to be $2.35 in one year. Analysts project the firm’s growth rate to be constant at 7.27%. Estimating the cost of equity using the discounted cash flow (or dividend growth) approach, what is Kirby’s cost of internal equity? 14.51%   13.78%   18.14%   19.59%     Estimating growth rates It is often difficult to estimate the expected future dividend growth rate for use in estimating the cost of existing equity using the DCF or DG approach. In general, there are three available methods to generate such an estimate: • Carry forward a historical realized growth rate, and apply it to the future. • Locate and apply an expected future growth rate prepared and published by security analysts. • Use the retention growth model.   Suppose Kirby is currently distributing 75% of its earnings in the form of cash dividends. It has also historically…