Questions
Free cash flow valuation   Nabor Industries is considering going public but is unsure of a fair...

Free cash flow valuation   Nabor Industries is considering going public but is unsure of a fair offering price for the company. Before hiring an investment banker to assist in making the public​ offering, managers at Nabor have decided to make their own estimate of the​ firm's common stock value. The​ firm's CFO has gathered data for performing the valuation using the free cash flow valuation model.

The​ firm's weighted average cost of capital is

13 %

and it has

$2,480,000

of debt at market value and

$500,000

of preferred stock at its assumed market value. The estimated free cash flows over the next 5​ years, 2016 through​2020, are given in the​ table,

Year

​(t​)

Free cash flow

​(FCF​)

2016

​$250,000

2017

​$300,000

2018

​$370,000

2019

​$440,000

2020

​$520,000

. Beyond 2020 to​ infinity, the firm expects its free cash flow to grow by

5 %

annually.

a.  Estimate the value of Nabor​ Industries' entire company by using the free cash flow valuation

model.

a.  The value of Nabor​ Industries' entire company is

​$ ? nothing.​(Round to the nearest​ dollar.)

In: Finance

Chose an organization you are familiar with, study its culture, then make assessment on how organizational...

  1. Chose an organization you are familiar with, study its culture, then make assessment on how organizational culture can influence innovation capabilities and competitiveness (you can use an organizations such as: Apple, Google, McDonald’s, Samsung,….) 1000 words.

In: Economics

Chose an organization you are familiar with, study its culture, then make assessment on how organizational...

  1. Chose an organization you are familiar with, study its culture, then make assessment on how organizational culture can influence innovation capabilities and competitiveness (you can use an organizations such as: Apple, Google, McDonald’s, Samsung,….) 1000 words.

In: Economics

Creative destruction does not imply: Group of answer choices Innovation sparks economic progress A slowdown in...

Creative destruction does not imply:

Group of answer choices

Innovation sparks economic progress

A slowdown in growth

Job destruction is stronger than job creation

More labor will be employed

Consumers dislike obsolete products

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In: Economics

What is SOA? How can SOA improve a business to make it more competitive and enable...

What is SOA? How can SOA improve a business to make it more competitive and enable it to provide better innovation than other organizations? Cite evidence and use examples. What are the benefits of SOA and any potential dangers?

In: Economics

Propose ONE new strategic initiative for the organisation to implement. This initiative can be a major...

Propose ONE new strategic initiative for the organisation to implement. This initiative can be a major functional initiative, such as marketing, use of technology, product (service) innovation/development, and M&A. Describe its contents in details and justify why it is strategic.

In: Operations Management

Describe the pro-productivity effects of environmental regulation. Discuss how these effects are related to measuring the...

Describe the pro-productivity effects of environmental regulation. Discuss how these effects are related to measuring the costs of environmental protection. In your discussion, make sure to include topics such as Porter hypothesis, innovation effects and the double-dividend hypothesis.

In: Economics

Subject: Innovation and technology management Successful businesses outperform their competitors due to some advantages that make...

Subject: Innovation and technology management

Successful businesses outperform their competitors due to some advantages that make them successful. Businesses also remain profitable due to their core competence. Discuss the concepts ‘competitive advantage’ and ‘core competence’.

In: Computer Science

based on all of your lesson in Personal Profile System (DiSC), Adaption Innovation Theory, Full Range...

based on all of your lesson in Personal Profile System (DiSC), Adaption Innovation Theory, Full Range Leadership, and Critical Thinking chose three areas that will provide the most leadership growth and write three specific goals.

In: Operations Management

Identify and discribe the Rogers’ five factors that influence diffusion process of innovation. Using an innovative...

Identify and discribe the Rogers’ five factors that influence diffusion process of innovation. Using an innovative product example, analyze the product using the five factors, and suggest your ideas to improve two of the areas among the five factors.

In: Economics