Shabbona Partners expects to have free cash flows of $38,950,000 next year, and free cash flows are expected to grow at a constant rate of 3% per year. If the firm's WACC is 9% per year, what is the value of Shabbona's operations?
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- Kinkead Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be −$10 million, but its FCF at t = 2 will be $20 million. After Year 2, FCF is expected to grow at a constant rate of 4% forever. If the weighted average cost of capital is 14%, what is the firm's value of operations, in millions?Kinkead Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be -$18 million, but its FCF at t = 2 will be $40 million. After Year 2, FCF is expected to grow at a constant rate of 5% forever. If the weighted average cost of capital is 14%, what is the firm's value of operations, in millions? Year: 1 2 Free cash flow: ($18) $40 (Round your answer to 2 decimal places.)The projected cash flow for the next year for Minesuah Inc. is $90,000, and FCF is expected to grow at a constant rate of 5%. If the company's weighted average cost of capital is 13%, what is the value of its operations?
- Kinkead Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be −$10 million, but its FCF at t = 2 will be $20 million. After Year 2, FCF is expected to grow at a constant rate of 4% forever. If the weighted average cost of capital is 14%, what is the firm's value of operations, in millions? a. $167 b. $158 c. $193 d. $175 e. $18The expected Cash Flow From Assets of The Skate Shop for the next two years are $208,000 and $218,000 respectively. After these two years, the growth rate of these cash flows will be a constant 4.7% per year.Assuming a discount rate of 9.7%, what is the present value of the terminal value of this firm?Your firm is evaluating a project that should generate revenue of P4,600 in year one, P5,200 in year two, P5,900 in year three, and P5,700 in year four. The firm receives each cash flow at the end of each year. If your firm's required return is 12%, compounding semi-annually, what is the future value of these cash flows at the end of year four?
- Dantzler Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 3 years, after which the FCF is expected to grow at a constant 5% rate. Dantzler's WACC is 11%. Year 1 FCF= -$11 Year 2 FCF= $17 Year 3 FCF= $45. a) What is Dantzler's horizon, or continuing value? b) What is the firm's market value today? Assume that Dantzler has zero non-operating assets. c) Suppose Dantzler has $112.60 of debt and 25 shares of stock outstanding. What is your estimate of the current price per share?Demo Inc. is expected to generate a free cash flow (FCF) of $6,155.00 million this year (FCF, = $6,155.00 million), and the FCF is expected to grow at a rate of 25.00% over the following two years (FCF, and FCF,). After the third year, however, the FCF is expected to grow at a constant rate of 3.90% per year, which will last forever (FCF.). Assume the firm has no nonoperating assets. If Demo Inc.'s weighted average cost of capital (WACC) is 11.70%, what is the current total firm value of Demo Inc.? (Note: Round all intermediate calculations to two decimal places.) O $110,497.24 million O $18,577.33 million O $146,683.23 million O $132,596.69 million Demo Inc.'s debt has a market value of $82,873 million, and Demo Inc. has no preferred stock. If Demo Inc. has 750 million shares of common stock outstanding, what is Demo Inc.'s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.) O $36.83 O $35.83 O $110.50 O $40.52Young & Liu Inc.'s free cash flow during the just-ended year (t = 0) was $100 million, and FCF is expected to grow at a constant rate of 5% in the future. If the weighted average cost of capital is 15%, what is the firm's value of operations, in millions?
- A company forecasts free cash flow in one year (i.e. FCF1) to be -$10 million and free cash flow in two years (i.e. FCF2) to be $20 million. After the second year, free cash flow will grow at a constant rate of 4 percent per year forever. If the WACC is 14 percent, what is the current value of operations (i.e., the present value of all future FCF)?Tin Roof's net cash flows for the next three years are projected at $72,00O, $78,000, and $84,000, respectively. After that, the cash flows are expected to increase by 3.2 percent annually. The aftertax cost of debt is 6.2 percent and the cost of equity is 11.4 percent. What is the value of the firm if it is financed with 30 percent debt and 70 percent equity?Dantzler Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFS) during the next 3 years, after which FCF is expected to grow at a constant 7% rate. Dantzler's WACC is 13%. Year ° 1 2 3 FCF (5 millions) $9 $26 $53 a. What is Dantzler's horizon, or continuing, value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3.) Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. Do not round Intermediate calculations. Round your answer to two decimal places. $ million b. What is the firm's market value today? Assume that Dantzler has zero nonoperating assets. Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. Do not round intermediate calculations. Round your answer to two decimal places. $ million c. Suppose Dantzler has $126.80 million of debt and 6 million shares of stock outstanding. What is your estimate of the…