Question
In: Finance
Consider the information provided in the following table. Using the additional information provided at the bottom,...
- Consider the information provided in the following table. Using the additional information provided at the bottom, calculate the value of the firm using FCFF method. [15]
|
Year |
2019 |
2020 |
2021 |
2022 |
2023 |
2024 |
2025 |
|
Total Assets |
10000 |
||||||
|
Fixed Assets |
8000 |
||||||
|
Current assets |
2000 |
||||||
|
Debt |
4000 |
||||||
|
Equity |
5000 |
||||||
|
Current liabilities |
1000 |
||||||
|
Sales |
15000 |
||||||
|
Operating expenses |
12000 |
||||||
|
EBIT |
3000 |
||||||
|
Int |
400 |
||||||
|
PBT |
2600 |
||||||
|
Tax(25%) |
650 |
||||||
|
PAT |
1950 |
- For first five years, growth rate is sales in 5% and from sixth year onwards it is 3%
- The asset turnover ratio remains constant
- The total debt to total asset ratio remains constant
- The depreciation rate is 25% and is already included in the operating expenses
- The ratio of operating expenses to sales remains constant
- The ratio of fixed assets to total assets remains constant
- The cost of capital for this firm is 15%
- The current ratio remains constant
- If you feel that some information is not provided, make some assumptions and write your assumptions in bold letters
Solutions
jeff jeffy answered 3 years agoRelated Solutions
3. Price is $45. Using the information provided in the table answer the following questions. a)...
3. Price is $45. Using the information provided in the table
answer the following questions. a) determine the firm’s
profit-maximizing level of production? b) determine how much profit
the firm will earn? c) Is quantity a continuous or discrete
variable? d) Is cost a continuous or discrete variable? e) Identify
the set of possible values of quantity. f) Identify the set of
possible values for TC.
Quantity
Total Cost
0
$12
1
$20
2
$36
3
$60
4
$92
5...
Valuation of assets Using the information provided in the following table, find the value of each...
Valuation of assets Using the information provided in the
following table, find the value of each asset:
Asset
End of Year
Amount
A
1
3000
18%
2
3000
3
3000
B
1
through &inf;
300
15%
C
1
0
16%
2
0
3
0
4
0
5
30000
D
1
through 5
1900
13%
6
8600
E
1
2000
13%
2
3000
3
5000
4
7000
5
4000
6
1000
Using the information provided in the following table, find the value of each asset: The value...
Using the information provided in the following table, find the
value of each asset:
The value of Asset A is
The value of Asset B
The value of Asset C
The value of Asset D
The value of Asset E
Asset
End of Year
Amount
Appropriate required return
A
1
$
7,000
8%
2
7,000
3
7,000
B
1 through∞
$
500
4%
C
1
$
0
5%
2
0
3
0
4
0
5
48,000
D
1 through...
Using the information provided in the following table, find the value of each asset. Cash flow...
Using the information provided in the following table, find the
value of each asset.
Cash flow
Asset
end of year
Amount
Appropriate required return
A
1
$6,000
13%
2
6,000
3
6,000
B
1 through ∞
$200
10%
C
1
$0
12%
2
$0
3
$0
4
$0
5
35,000
D
1 through 5
$2,500
12%
6
8,500
E
1
$3,000
19%
2
2,000
3
8,000
4
7,000
5
4,000
6
1,000
Using the demographic information in the table below, consider the following scenario: A teacher chooses a...
Using the demographic information in the table below, consider
the following scenario: A teacher chooses a student to dim the
lights and a student to shut the door. If a student may do both
jobs, determine the following probabilities.
Total number of students in the class
50
Number of Boys
35
Number of girls
15
Number of freshman
22
Number of sophomores
13
Number of juniors
9
Number of seniors
6
Number of education majors
7
Number of non-education majors...
Using the demographic information in the table below, consider the following scenario: A teacher chooses a...
Using the demographic information in the table below, consider
the following scenario: A teacher chooses a student to dim the
lights and a student to shut the door. In how many ways can the
teacher do this if a student may do both jobs and:
Total number of students in the class
50
Number of Boys
35
Number of girls
15
Number of freshman
22
Number of sophomores
13
Number of juniors
9
Number of seniors
6
Number of education...
Using the information provided in the table below, find the probability of completing the project in...
Using the information provided in the
table below, find the probability of completing the project in 46
weeks?
Activity
Immediate Predecessor(s)
Optimistic Time Estimate (weeks)
Most Likely Time Estimates (weeks)
Pessimistic Time Estimates (weeks)
A
none
3
6
9
B
A
3
5
7
C
A
4
7
12
D
B, C
4
8
10
E
B, C
9
12
18
F
D
5
10
13
G
E
3
6
8
H
F
1
5
12
I
G
7
8...
make it clear using table or excel Consider the following information that relates to five different...
make it clear using table or excel
Consider the following information that relates to five
different items of plant and equipment at the reporting date:
Asset
Carrying amount
$
Fair value
$
Costs of disposal
$
Value in use
$
A
100 000
105 000
3 000
110 000
B
50 000
45 000
1 000
48 000
C
80 000
85 000
2 000
82 000
D
200 000
190 000
5 000
220 000
E
120 000
120...
Complete the following using present value. (Use the Table provided.)
Complete the following using present value. (Use the Table provided.)
If a company has the following current Free Cash Flow and the additional information provided, what...
If a company has the
following current Free Cash Flow and the additional information
provided, what is the price per share?
FCF Year 1 = $145,000
Expected growth rates
Yr 2: 12.70%
Yr 3: 14.10%
Yr 4: 9.60%
Yr
5: 10.25%
Yr 6: 8.40%
WACC 10.85%
ROE 18.15%
Plowback 38.00%
ST investments $86,000
LT Debt
$265,000
Pfd Stock
$32,000
# of shares 105,000
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