Lazard estimated SolarCity's enterprise value as the present value of net cash flow for 2016 - 2020 plus a terminal value, assuming discount rate WACC of 10.5% and a perpetuity growth rate of 1.5%. SolarCity's equity value was then estimated by subtracting from enterprise value the face value of net debt (debt minus cash), $3.4 billion. SolarCity had 98.3 million shares outstanding. SolarCity management projections of net cash flow ($millions) in financially constrained case: FY 2016 FY2017 FY2018 FY 2019 161 290 454 499 FY2020 635 What is the stock price in the financially constrained case? • For simplicity, assume the valuation date is the beginning of fiscal year 2016 and all cash flows will be realized at the end of the corresponding fiscal year.

Notes for 2024: Sales are estimated to be $85,000 in 2024 Assume the following: COGS are Variable $2000 of the Operating Expenses are Fixed Depreciation and the Remainder of the Operating Expenses are Fixed The firm will maintain its dividend payout ratio this year Cash, Accounts Receivable, Inventories, Net Plant, Accounts Payable and Accrued Payables are Spontaneous Market Securities, Bonds Payable and Common Stock are Discretionary $500 of Bonds Payable are Current and Will be Repaid at the Beginning of the Year Below is the 2023 Income Statement and Balance Sheet data you will be using to complete your forecast. Income Statement For the Year Ended December 31, 2023 Sales 70,000 COGS 45,000 Gross Profit 25,000 Operating Expenses 8,000 Depreciation 5,000 13,000 EBIT 12, 000 Interest Expense 1,300 EBT 10, 700 Tax Expense 2, 247 Earning After Taxes 8, 453 Dividends 3,000 Addition to Retained Earnings 5, 453 Balance Sheet December 31, 2023 Cash 8, 100 Marketable Securities 2,000…

Dyrdek Enterprises has equity with a market value of $12.6 million and the market value of debt is $4.45 million. The company is evaluating a new project that has more risk than the firm. As a result, the company will apply a risk adjustment factor of 1.9 percent. The new project will cost $2.56 million today and provide annual cash flows of $666,000 for the next 6 years. The company's cost of equity is 11.79 percent and the pretax cost of debt is 5.06 percent. The tax rate is 24 percent. What is the project's NPV? Multiple Choice $208,195 $194,561 $536,049 $183,363 $364,858

Reynolds Construction's current value of operations is $750 million based on the free cash flow valuation model. Its balance sheet shows $50 million of short-term investments that are unrelated to operations, and $300 million of total debt. What is the best estimate for the firm's value of equity, in millions?.

ACME Software Company has CURRENT (i.e. today; year "zero") market value of its venture's assets of $250K (effectively its current equity valuation cash flow). Forecasted cash-flows for next 5 years is as follows: Year 1: ($350,000), i.e. negative Year 2: ($100,000) Year 3: $250,000, i.e. positive Year 4: $450,000 Year 5: $500,000 Year 6+: Assume $600K in year 6, growing at 6% annually thereafter Years 1-5 discount rate of 40% Years 6+ assume 15% given company should be more mature, less risky, and more predictable. Given the same information as the previous question, how much %ownership (rounded) would a $250,000 investment fetch assuming the NPV of the ACME Software (the pre-money valuation) you just calculated?