13. The firm's free cash flow during the just-ended year (t= 0) was P 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. 948 d. 1,103 c. 1,050 f. 1,987 b. 998 e. 1,158 14. The projected cash flow for the next year is P 1,000,000, and FCF is expected to grow at a constant rate of 6%. If the company's weighted average cost of capital is 12%, what is the value of its operations? b. 16,666,667 s. 2,100,000 a. 1,714,750 d. 2,000,000 c. 8,833,333 f. 8,333,333
13. The firm's free cash flow during the just-ended year (t= 0) was P 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. 948 d. 1,103 c. 1,050 f. 1,987 b. 998 e. 1,158 14. The projected cash flow for the next year is P 1,000,000, and FCF is expected to grow at a constant rate of 6%. If the company's weighted average cost of capital is 12%, what is the value of its operations? b. 16,666,667 s. 2,100,000 a. 1,714,750 d. 2,000,000 c. 8,833,333 f. 8,333,333
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter7: Corporate Valuation And Stock Valuation
Section: Chapter Questions
Problem 11P: Brook Corporation’s free cash flow for the current year (FCF0) was $3.00 million. Its investors...
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![13. The firm's free cash flow during the just-ended year (t = 0) was P 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. 948
d. 1,103
c. 1,050
f. 1,987
b. 998
e. 1,158
14. The projected cash flow for the next year is P 1,000,000, and FCF is expected to grow at a constant rate of
6%. If the company's weighted average cost of capital is 12%, what is the value of its operations?
b. 16,666,667
e. 2,100,000
a. 1,714,750
d. 2,000,000
с. 8,833,333
f. 8,333,333](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0510fd7a-70da-44a2-88e4-a7ca3757b8c2%2F9531ed1d-4667-4fe2-b78e-fee05afbb223%2Fr5dnhc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:13. The firm's free cash flow during the just-ended year (t = 0) was P 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. 948
d. 1,103
c. 1,050
f. 1,987
b. 998
e. 1,158
14. The projected cash flow for the next year is P 1,000,000, and FCF is expected to grow at a constant rate of
6%. If the company's weighted average cost of capital is 12%, what is the value of its operations?
b. 16,666,667
e. 2,100,000
a. 1,714,750
d. 2,000,000
с. 8,833,333
f. 8,333,333
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