Question
In: Finance
Selected data for the Derby Corporation are shown below. Use the data to answer the following...
| Selected data for the Derby Corporation are shown below. Use the data to answer the following questions. | ||||||
| INPUTS (In millions) | Year | |||||
| Current | Projected | |||||
| 0 | 1 | 2 | 3 | 4 | ||
| Free cash flow | -$20.0 | $20.0 | $80.0 | $84.0 | ||
| Marketable Securities | $40 | |||||
| Notes payable | $100 | |||||
| Long-term bonds | $300 | |||||
| Preferred stock | $50 | |||||
| WACC | 9.00% | |||||
| Number of shares of stock | 40 | |||||
| a. Calculate the estimated horizon value (i.e., the value of operations at the end of the forecast period immediately after the Year-4 free cash flow). Assume growth becomes constant after Year 3. | ||||||
| Current | Projected | |||||
| 0 | 1 | 2 | 3 | 4 | ||
| Free cash flow | -$20.0 | $20.0 | $80.0 | $84.0 | ||
| Long-term constant growth in FCF | ||||||
| WACC | ||||||
| Horizon value | ||||||
| Cash flows | ||||||
| b. Calculate the present value of the horizon value, the present value of the free cash flows, and the estimated Year-0 value of operations. | ||||||
| Value of operations (NPV of all the cash flows) | ||||||
Is the free cash flow the same as the cash flow?
Is the horizon value same as projected 3 and 4?
I want to calculate the highlighted boxes.
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Selected data for the Derby Corporation are shown below. Use the data to answer the following...
Selected data for the Derby Corporation are shown below.
Use the data to answer the following questions.
INPUTS (In millions)
Year
Current
Projected
0
1
2
3
4
Free cash flow
-$20.0
$20.0
$80.0
$84.0
Marketable Securities
$40
Notes payable
$100
Long-term bonds
$300
Preferred stock
$50
WACC
9.00%
Number of shares of stock
40
a. Calculate the estimated horizon value (i.e., the value
of operations at the end of the forecast period immediately after
the Year-4 free cash flow)....
Selected financial data for Widget Unioned is presented below, use the information to answer the following...
Selected financial data for Widget Unioned is presented below,
use the information to answer the following questions:
Current Assets
As of Dec. 31, 2017
Dec. 31, 2016
Cash and short-term investments
$1,267,038
$ 616,604
Accounts Receivable (net)
490,816
665,828
Inventories
338,599
487,505
Prepaid Expenses and other current assets
292,511
291,915
Total Current Assets
$2,388,964
$2,061,852
Current Liabilities
Short-term borrowings
$ 25,190
$ 38,108
Current portion of long-term debt
182,295
210,090
Accounts payable
296,307
334,247
Accrued liabilities
941,912
743,999
Income taxes payable
203,049
239,793...
4. Use the following table to calculate the amounts listed below: Hellitech Corporation – Selected Data...
4. Use the following table to calculate the amounts listed
below: Hellitech Corporation – Selected Data Credit Sales $127,382
Cost of Goods Sold $76,157 Beginning Inventory $10,583 ENDING
INVENTORY $13,685 Accounts Receivable BEGINING $5,130 ENDING
$5,690. Accounts Payable BEGINING $7,205, ENDING $8,105.
What is the:
? Inventory Period ? Accounts Receivable Period ? Accounts
Payable Period ? Operating Cycle ? Cash Cycle
Use the following data to answer the questions below:
Use the following data to answer the
questions below: Q
VC
MC
AVC
1
$10
___
___
2
16
___
___
3
20
___
___
4
25
___
___
5
31
___
___
6
38
___
___
7
46
___
___8
55
___
___9
65
___
___ a. Calculate the marginal cost and
average variable cost for each level of production.b. How much would the firm produce if
it could sell its product for...
[The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below:...
[The following information applies to the questions
displayed below.]
Data for Hermann Corporation are
shown below:
Per Unit
Percent
of Sales
Selling price
$
140
100%
Variable
expenses
91
65%
Contribution
margin
$
49
35%
Fixed expenses are $88,000 per month and the company is selling
3,000 units per month.
Required:
1-a.
The marketing manager argues that a $9,300 increase in the
monthly advertising budget would increase monthly sales by $21,500.
Calculate the increase or decrease in net operating...
[The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below:...
[The following information applies to the questions
displayed below.]
Data for Hermann Corporation are
shown below:
Per Unit
Percent
of Sales
Selling price
$
80
100%
Variable
expenses
44
55%
Contribution
margin
$
36
45%
Fixed expenses are $76,000 per
month and the company is selling 2,500 units per month.
2.
value:
1.25 points
Required information
Required:
1-a.
The marketing manager argues that a $8,100 increase in the
monthly advertising budget would increase monthly sales by $15,500.
Calculate the...
Use the ERA and Win% data for the 8 randomly selected MLB pitchers below to answer...
Use the ERA and Win% data for the 8 randomly selected MLB
pitchers below to answer the following questions.
(please include the steps used to answer the questions. Thank
you.)
ERA
0.035
0.021
0.022
0.025
0.015
0.029
0.015
0.026
Win%
0.545
0.554
0.718
0.610
0.675
0.535
0.665
0.604
Question 1A
Compute
the IQR for Win%.
Question 2B
Compute
the covariance between ERA and Win%.
Question 3C
Compute
the correlation between ERA and Win%.
Use the chart of data below to answer the following questions. This data represents enrollment for...
Use the chart of data below to answer the following questions.
This data represents enrollment for the Fall semesters 2013 – 2017
years.
Part a: Is being part time dependent upon gender?
Part b: Is the probability of being a male student enrolled (or
female) dependent upon year?
Part c: Create a probability tree, with the appropriate
probabilities using the data from the table. Assume the tree is
showing the PT or FT probabilities given the gender of the
student....
Following is data for Pitt-Vaughn Academy (PVA). Use the data below to answer each of the...
Following is data for Pitt-Vaughn Academy (PVA). Use the data
below to answer each of the enumerated requirements.
Pitt-Vaughn Academy (PVA), a school owned by Lily Pitt-Vaughn,
provides training to individuals who pay tuition directly to the
school. PVA also offers training to groups in off-site locations.
PVA initially records prepaid expenses and unearned revenues in
balance sheet accounts. Its unadjusted trial balance as of December
31 follows along with descriptions of items a through h that
require adjusting entries...
Following is data for Pitt-Vaughn Academy (PVA). Use the data below to answer each of the...
Following is data for Pitt-Vaughn Academy (PVA). Use the data
below to answer each of the enumerated requirements.
Pitt-Vaughn Academy (PVA), a school owned by Lily Pitt-Vaughn,
provides training to individuals who pay tuition directly to the
school. PVA also offers training to groups in off-site locations.
PVA initially records prepaid expenses and unearned revenues in
balance sheet accounts. Its unadjusted trial balance as of December
31 follows along with descriptions of items a through h that
require adjusting entries...
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