A company's most recent annual Free Cash Flow is $180,000,000.
Free cash flow is expected to grow by 15% per year for the next 10
years and then grow by 3% per year thereafter. Investors required
rate of return is 11%. What is the current value of the stock?
a. $11,300,755,080
b. $2,250,000,000
c. $5,404,011,121
d. $1,636,363,636
Lovato Motors Inc. has cash flows from operating activities of $720,000. Cash flows used for investments in property, plant, and equipment totaled $440,000, of which 85% of this investment was used to replace existing capacity. Determine the free cash flow for Lovato Motors Inc.
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, $20 million of cash, and 28 million shares outstanding.
What's the value of each share?
For a company, the cash flow from assests (or free cash flow)
projections for the next three years are as follows. After year 3,
the company will continue growing at a constant rate of 1.5%. the
firm's tax rate is 3% and will maintain a debt-equity ratio of
0.50. the risk-free rate is 3%, the expected market risk premium
over the risk free rate is 6%, and the company's equity beta is
1.50. The company's pre-tax cost of debt is...
Cash flow series
Annual Cash Flow ($ per year)
Annual Cash Flow ($ per year)
Annual Cash Flow ($ per year)
Year
Prob = 0.3
Prob = 0.22
Prob = 0.48
0
–5000
–6000
–4000
1
1000
500
3100
2
1000
1500
1200
3
1000
2000
100
Determine the expected present worth of the following cash flow
series if each series may be realized with the probability shown at
the head of each column. Let i = 20% per year....
Can free cash flow be a negative number? What does a lack of free
cash flow indicate for a business? Please indicate why free cash
flow may be a better indicator than Cash Flows from Operating
Activities of financial strength.
ABC’s the most recent free cash flow (FCF0) is $200 million. The
free cash flow is expected to grow at a rate of 40 percent, and 20
percent in the second year. After two years, it is expected to grow
forever at a constant rate of 5 percent. The cost of common stock
(rs) is 12% and the weighted average cost of capital (WACC) is 9%.
ABC balance sheet shows $20 million in short term investments that
are unrelated to...
Gilligan's Boat Tours Ltd. most recent free cash flow was
$100,000. The company expects free cash flows to grow at 30% per
year for the next three years and then be stable in future years.
The company’s cost of equity (rs) is 12% and its WACC is 11%. The
company has $400,000 in long-term debt and has 50,000 common shares
outstanding.
a.Calculate Gilligan's Boat Tours Ltd. current common share
price
b.
Below are two industry average multiples. Gilligan's Boat Tours...
Consider the cash flow for an investment project with MARR =
15.9%. Determine the annual equivalent worth for the project. The
answer could be negative.
The cash flow for years 0 through 4 in dollars is as follows:
-2,700
1,700
1,200
1,500
250"
"Consider the cash flow for an investment project with MARR =
17.4%. Determine the annual equivalent worth for the project. The
cash flow for years 0 through 4 in dollars is as follows:
-4,100
1,600
1,700
1,300
540"