17. Assume a corporation is expecting the following cash flows in the future: $-7 million in...

17. Assume a corporation is expecting the following cash flows in the future: $-7 million in year 1, $11 million in year 2, $23 million in year 3. After year 3, the cash flows are expected to grow at a rate of 5% forever. The discount rate is 9%, the firm has debt totaling $54 million, and 9 million shares outstanding. What should be the price per share for this company?

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jeff jeffy answered 8 months ago

1. Assume a corporation is expecting the following cash flows in the future: $-6 million in...

1. Assume a corporation is expecting the following cash flows in the future: $-6 million in year 1, $8 million in year 2, $19 million in year 3. After year 3, the cash flows are expected to grow at a rate of 4% forever. The discount rate is 8%, the firm has debt totaling $55 million, and 9 million shares outstanding. What should be the price per share for this company? 1a. As with most bonds, consider a bond with...

Assume a corporation is expecting the following cash flows in the future: $-9 million in year...

Assume a corporation is expecting the following cash flows in the future: $-9 million in year 1, $11 million in year 2, $23 million in year 3. After year 3, the cash flows are expected to grow at a rate of 6% forever. The discount rate is 13%, the firm has debt totaling $47 million, and 8 million shares outstanding. What should be the price per share for this company?

Assume a corporation is expecting the following cash flows in the future: $-8 million in year...

Assume a corporation is expecting the following cash flows in the future: $-8 million in year 1, $11 million in year 2, $18 million in year 3. After year 3, the cash flows are expected to grow at a rate of 6% forever. The discount rate is 14%, the firm has debt totaling $42 million, and 9 million shares outstanding. What should be the price per share for this company? Enter your answer in dollars, rounded to the nearest cent.

Assume a corporation is expecting the following cash flows in the future: $-5 million in year...

Assume a corporation is expecting the following cash flows in the future: $-5 million in year 1, $8 million in year 2, $22 million in year 3. After year 3, the cash flows are expected to grow at a rate of 6% forever. The discount rate is 11%, the firm has debt totaling $41 million, and 10 million shares outstanding. What should be the price per share for this company? Enter your answer in dollars, rounded to the nearest cent.

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Based on the following cash flows, find the future value in year 9. Assume deposits were...

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