These are the details for ABC Company. Expected to produce a cash flow of $95 million...

These are the details for ABC Company. Expected to produce a cash flow of $95 million the current year. Next 3 years to grow at 20%. After that the next 3 years at 10%. Followed by a growth rate of 5 years until eternity of 5%. Assuming its weighted cost of goods sold at 15% it catties a debt of $250 million and has 125 million shares with a preferential shares of 20 million. The question is what is ABC share price?

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jeff jeffy answered 1 year ago

A company’s free cash flow next year is expected to be -$11.2 million, $3.6 million the...

A company’s free cash flow next year is expected to be -$11.2 million, $3.6 million the following year, and $6.2 million in the third year. Thereafter, the free cash flow is expected to grow forever at a rate of 4.8% per year. The company’s weighted average cost of capital is 11.1% per year and the market value of its debt is $35.2 million. If the company has four million shares of common stock outstanding, what is the value per share?...

You are operating an old machine that is expected to produce a cash flow 0f $5,000...

You are operating an old machine that is expected to produce a cash flow 0f $5,000 in each of the next 3 years before it fails. You can replace it now with a new machine that costs $20,000 but is much ore efficient and will provide a cash flow of $10,000 a year for 4 years. Calculate the equivalent annual cost of the new machine if the discount rate is 15% (Do not round intermediate calculations. Round your answer to...

Rayco Corporation’s free cash flow in 2019 is $24 million. This is expected to grow by...

Rayco Corporation’s free cash flow in 2019 is $24 million. This is expected to grow by 6% for the next three years. Thereafter, it grows by 2% each year forever. The market value of debt outstanding is $17 million, and weighted average cost of capital is 15%. Determine the terminal value of the firm. What model would you use to value the firm? Determine the value of the firm, and the value of equity.

A diamond mine is expected to produce regular annual cash flows of $1 million for 8...

A diamond mine is expected to produce regular annual cash flows of $1 million for 8 years with the first regular cash flow expected in 1 year from today. In addition to the regular cash flows of $1,000,000, the diamond mine is also expected to produce an extra cash flow of $3,000,000 in 8 years from today. The cost of capital for the mine is 12 percent. What is the value of the mine? Bob has an investment worth $300,000....

A company generated free cash flow of $43 million during thepast year. Free cash flow...

A company generated free cash flow of $43 million during the past year. Free cash flow is expected to increase 6% over the next year and then at a stable 2.8% rate in perpetuity thereafter. The company's cost of capital is 11.2%. The company has $330 million in debt, $20 million of cash, and 28 million shares outstanding. What's the value of each share?

ABC Enterprise has never paid a dividend. Free cash flow is projected to be $20 million...

ABC Enterprise has never paid a dividend. Free cash flow is projected to be $20 million and $30 million for the next 2 years, respectively; after the second year, FCF is expected to grow at a constant rate of 7%. The company’s weighted average cost of capital is 12%. ABC has short-term investments of $100 million, the total debt of $80 million, and preferred stock of $20 million. ABC has 10 million shares of common stock. What is the intrinsic...

A firm is expected to have free cash flow of $881 million next year. The firm...

A firm is expected to have free cash flow of $881 million next year. The firm has $1 billion of outstanding debt and no preferred stock. The WACC is 7% and FCF is expected to grow at 1% indefinitely. If the firm has 91 million shares outstanding, what is the expected value of the firm's stock price? If a portfolio holds three stocks in equal amounts, and the betas of the three stocks are 0.8, 1.4, and 1.4, what is...

A firm is expected to have free cash flow of $782 million next year. The firm...

A firm is expected to have free cash flow of $782 million next year. The firm has $1 billion of outstanding debt and no preferred stock. The WACC is 10% and FCF is expected to grow at 1% indefinitely. If the firm has 104 million shares outstanding, what is the expected value of the firm's stock price?

Smith and T Co. is expected to generate a free cash flow (FCF) of $8,210.00 million...

Smith and T Co. is expected to generate a free cash flow (FCF) of $8,210.00 million this year (FCF₁ = $8,210.00 million), and the FCF is expected to grow at a rate of 23.80% over the following two years (FCF₂ and FCF₃). After the third year, however, the FCF is expected to grow at a constant rate of 3.54% per year, which will last forever (FCF₄). Assume the firm has no nonoperating assets. If Smith and T Co.’s weighted average...

extensive enterprise inc. is expected to generate a free cash flow of $3,300.00 million this year,...

extensive enterprise inc. is expected to generate a free cash flow of $3,300.00 million this year, and the fcf is expected to grow at a rate of 21.40% over the following two years. After the third year, however, the fcf is expected to grow at a constant rate of 2.82% per year, which will last forever. If extensive enterprise inc.'s weighted average cost of capital is 8.46% what is the current total firm value of extensicve enterprise inc.? 10,260.11 Million...

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