You are valuing a company that had sales of £ 80000 in 2021 and the expected year-on-year growth rate of sa are 5% and 2%, respectively. For both years 2022 and 2023 you expect EBIT margin (as a percentage of sales tax rate is 20%. You have the additional assumptions: Values in £ Depreciations & Provisions Capex Changes Working Capital 2022 2400 3200 400 2023 2800 3400 -300
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- Answer this question without the use of excel please. Simply use mathematical formulas that your supposed to use to get to the answer: Consider company ABC. Today it is 1st of January 2023 and ABC has just paid a dividend of £3million. The expected earnings of ABC for the next 30 years are forecast to grow at a rate of 15%per annum. From 1st of January 2053 and onwards the earnings of ABC are expected to grow at arate of 5%. The required rate of return of ABC is 12% per annum. The current dividend policy of ABC is such that they pay out 50% of its earnings as dividends(assume that they pay their dividends on 1st of January every year). a) Suppose that the dividend payout ratio is expected to stay constant in the future. What is the value of ABC stock? Show and explain your calculations and any assumptions you make.b) Just after the dividend payment on 1st of January 2043, ABC is planning to reduce their dividends and only pay out 40% of its earnings. What is the value of ABC under the…Suppose a firm has had the historical sales figures shown as follows. What would be the forecast for next year's sales using the average approach? Year 2017 2018 Sales $ 750,000 500,000 Multiple Choice O $695,000 $700,000 $750,000 $775.000 2019 $ 700,000 2020 $ 750,000 2021 $ 775,000Suppose that a company yields mean returns of 20% (equity), and 9% mean returns on every peso the company invests (debt) in a certain alternative. What would be the best decision if the MARR and ROR calculated is 12%?
- Net Income for Company A is $200,000 in 2014, $300,000 in 2015, $400,000 in 2016, $500,000 in 2017, and $600,000 in 2018. The expected growth for all years after 2018 is 5%, the 90-Day T-Bill Rate is 20%, and the appropriate percentage above risk-free rate is 12%. Using this information, what is the reasonable value for Company A based on its future income stream for 2014 to 2018? A. 1,394,267.03 B. 4,394,267.03 A or B?Net Income for Company A is $200,000 in 2014, $300,000 in 2015, $400,000 in 2016, $500,000 in 2017, and $600,000 in 2018. The expected growth for all years after 2018 is 5%, the 90-Day T-Bill Rate is 20%, and the appropriate percentage above risk-free rate is 12%. Using this information, what is Net Present Value? A. 412,020.21 B. 812,020.21Suppose a firm has had the following historic sales figures. Year: 2016 2017 2018 2019 2020 Sales $1,530,000 $1,720,000 $1,560,000 $2,100,000 $1,850,000 What would be the forecast for next year’s sales using FORECAST.ETS to estimate a trend? Note: Round your answer to the nearest whole dollar.
- Assume your organization wishes to make a Php 200,000 investment with a private equity firm in 2021. Taking into account all of the risks, the current discount rate is 12%, and the revenue stream/dividends are as follows: 2022 50002023 60002024 70002025 80002026 90002027 100002028 11000 Determine the following:a. NPV for the period 2022 through 2028;b. Total NPV using manual computation;c. Total NPV using the Excel function; andd. IRR rate.Suppose a firm has had the following historic sales figures. Year: 2016 2017 2018 2019 2020 Sales $3,100,000 $3,350,000 $3,000,000 $3,600,000 $3,200,000 What would be the forecast for next year’s sales using the naïve approach?The consulting company Maggi has been hired to value the company Bolli AS, Bolli expects one operating profit of NOK 400 million in 2023. The company is expected to grow by 2.25% in year, and achieves a 9% return on invested capital. Bolli is 100% equity financed and the cost of equity is 10%. a) What is the investment rate for Bolli? b) What is the value of the company in 2022? c) Maggi believes that growth in the future will be higher than 2.25%, they believe that it is more likely to be 4.5%. What is the value of Bolli in 2022 if this growth is used as a basis. the value calculation?
- Calculate the ROE for a firm if it has a profit margin of 20%, an asset turnover of 2, and an equity multiplier of 1.4. For this calcualtion, if you multiply the numbers as they appear, you do NOT have to convert your final answer and cansimply type it in. So if you were multiplying 10%*1.5*5 = 75, you would simply enter 75 for 75% into BB.Suppose a firm has had the following historic sales figures. Year: 2016 Sales $1,420,000 2017 $1,720,000 Next year's sales 2018 2019 2020 $1,600,000 $2,010,000 $1,770,000 What would be the forecast for next year's sales using FORECAST.ETS to estimate a trend? Note: Round your answer to the nearest whole dollar. 27Company IC2S is expected to earn £1250 and £1530 before interest and taxes in year 2021 and 2022. The market expects these earnings to grow at a rate of 2.8% per year after 2022. The firm will make no net investments in long-term capital (i.e., capital expenditures will equal depreciation of long-term assets) nor changes to net working capital. It has debt of £3250 at the end of 2020 with before-tax cost of debt of 3.5%. The debt for the next two years is expected to be £3300 and £3392.40. It then grows by 2.8% to keep a constant ratio of debt to equity every year. Assume that the corporate tax rate equals 22.5%. Suppose the risk-free rate equals 1.7%, and the expected return on the market equals 7.1%. The asset beta for this industry is 1.30. Estimate the unlevered cost of equity capital assuming the firm’s asset beta equals its industry beta. Estimate the firm level free cash flows at the end of 2021-2023. If IC2S were an all-equity (unlevered) firm, estimate its market value at…