A 1 Question: Suppose Boyson Inc.'s free cash flow for next year is FCF1 = $150,000, and FCF is expected to 2 grow at a constant rate of 6.5%. If WACC Is 11.5%, what is Its total corporate value? 3 a. $2,707,500 4 b. $3,195,000 5 c. $2,572,125 6 d. $2,816,901 7 8 e. $3,000,000 9 10 11 12 13 14
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- Suppose Leonard, Nixon, & Shull Corporation’s projected free cash flow (FCF) for next year is $750,000, and FCF is expected to grow at a constant rate of 4% indefinitely. If the company’s weighted average cost of capital is 10%, what is the value of its operations? a. $18,750,000 b. $12,500,000 c. $7,500,000 d. $13,000,000 e. $10,833,333Intro Nickelon's free cash flow during the current year is $150 million, which is expected to grow at a constant rate of 5% in the future. The weighted average cost of capital is 11%. Part 1 What is the firm's total corporate value (in $ million)? 0+ decimals Submit13. 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
- You expect ATM Corporation to generate the following free cash flows over the next five years: Year 1 2 3 4 5 FCF ($ millions) 75 84 96 111 120 Beginning with year six, you estimate that ATMʹs free cash flows will grow at 6% per year and that ATMʹs weighted average cost of capital is 15%. The enterprise value of ATM corporation is closest to: A. $1017.66 million B. $314.98 million C. $1413.33 million D. $702.67 millionIntro Exavior Inc.'s free cash flow during the current year is $140 million, which is expected to grow at a constant rate of 4% in the future. The weighted average cost of capital is 9%. Part 1 What is the firm's total corporate value (in $ million)? 0+ decimals SubmitFind the present value of the following stream of a firm's cash flows, assuming that the firm's opportunity cost is 8%. End of year Cash flow 1 2 3 $5,000 $25,000 $14,000
- Young & Liu Inc.'s free cash flow during the just-ended year (t = o) 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. $998 O b. $1,050 Oc$1,158 Od. $948 Oe. $1,103) Suppose a company’s current free cash flow (i.e. FCF0) is $100 million and is expected to grow at a constant rate of 5 percent. If the company’s overall cost of capital is 15 percent, what is the current value of operations? $ 913 million $1,000 million $1,050 million $1,500 million $2,000 millionThe free cash flows (in millions) shown below are forecast by Simmons Inc. If the weighted average cost of capital is 13% and the free cash flows are expected to continue growing at the same rate after Year 3 as from Year 2 to Year 3, what is the Year 0 value of operations, in millions? Year: 1 2 3 Free cash flow: −$20 $42 $45 $680 $648 $617 $586 $714
- A company forecasts a free cash flow of $55 million in Year 3, i.e., at t = 3, and it expects FCF to grow at a constant rate of 5.5% thereafter. If the weighted average cost of capital (WACC) is 10.0% and the cost of equity is 15.0%, then what is the horizon, or continuing, value in millions at t = 3? Group of answer choices $1,083 $1,148 $1,289 $1,186 $1,212Question#01 Amazon Inc. is a fast-growing company. Analysts project the followingfree cash flows (FCFs) during the next 3 years, after which FCF is expected to grow at a constant 7% rate. Amazon’s cost of capital is WACC = 13%. Time 1 2 3 Free cash flow ($ millions) -$20 $30 $40 What is Amazon’s terminal, or horizon, value? (Hint: Find the value of all free cash flows beyondYear 3 discounted back to Year 3.) What is the current value of operations for Amazon? Suppose Amazon has $10 million in marketable securities, $100 million in debt, and 10 millionshares of stock. What is the price per share?Problem 01-04 (algo) A firm's current profits are $950,000, These prafits are expected to grow indefinitely at a constant annual rate of 6 percent. If the firm's apportunity cost of funds is 8 percent, determine the value of the firm: Instructions: Enter your respanses rounded to two decimal places. a. The instant before It pays out current profits as dividends. million b. The instant after it pays out current profits as dividends. million
