You have just learned that B&M has undertaken a major expansion that will change its expected free cash flows to −$10 million in 1 year, $20 million in 2 years, and $35 million in 3 years. After 3 years, free cash flow will grow at a rate of 5%. No new debt or preferred stock were added, the investment was financed by equity from the owners. Assume the WACC is unchanged at 11% and it that there are still has 10 million shares of stock outstanding. (1.) What is its horizon value (i.e., its value of operations at year three)? What is its current value of operations (i.e., at time zero)? 2) What is the estimated intrinsic value of equity on a price per share basis?

Company A just reported free cash flows of $24 million and expects FCF to grow at a constant rate of 5% forever. The company has $100 million in cash, $200 million debt, $50 million preferred stock, and 10 million shares of common stock outstanding. Their cost of debt is 11% and they are located in a country with no corporate taxes. If the expected risk free rate is 2%, the expected return on the S&P 500 is 8%, and their beta is 1.5, what is the price of one share of Company A’s stock today? Give typing answer with explanation and conclusion

Your company has just successfully completed some R&D work that leads you to expect that its earnings and dividends will grow at a rate of 43.50% this year, 24.50% next year, after which growth should match the 6.00% industry average growth rate, which is a more sustainable rate. The last dividend paid (D0) was $1.40 and your firm's WACC is 12.54%. What is the value per share of your firm's stock?

Mokoko Ltd. is considering a number projects and thus need to estimate its cost of capital in order to estimate their NPV.  The company’s current dividend is $2.25 per share, which has grown steadily at 6% each year for over a decade and is expected to continue doing so.  Its stock currently trades at $26 and there are 2 million shares outstanding.  The company’s 100,000 preferred shares trade at $22 and pay annual dividends of $3.  Cash and marketable securities on the company’s balance sheet total $30.5 million and the firm pays a tax rate of 30%.  Their existing long-term debt (face value of $100 million, semi-annual payments) pays a 9.5% coupon and has 12 years remaining before maturity.  Due to current conditions, the required rate of return (yield to maturity) on this debt is 11% and any new debt issuance would be required to offer the same yield to investors (there is no term premium for 1 year vs 12 year debt). What is Mokoko Ltd's Debt/Equity ratio? Assuming the firm wants to…