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,

. 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

​$ 4,969,043 nothing

b.  Use your finding in part

a​,

along with the data provided​ above, to find Nabor​ Industries' common stock value.

b.  The value of Nabor​ Industries' common stock is

​$ ? nothing.

​(Round to the nearest​ dollar.)

Following is financial information for NetFlix, Inc., for the year ended December 31, 2016 (in thousands). Use the parsimonious method of forecasting to project net operating

profit after tax (NOPAT) and net operating assets (NOA) for 2017 through 2020, inclusive.

Assume that net operating profit margin (NOPM) and net operating asset turnover (NOAT) will remain at 2016 levels. Assume that sales will grow at 5% per year.

Required:

Use the parsimonious method of forecasting to project net operating profit after tax (NOPAT) and net operating assets (NOA) for 2014 through 2017, inclusive.

If capital structure results in reduced leverage, the beta of equity after the capital structure change should be higher than before the change.

True or False.

calculate the pH of 100 mL of a buffer that is .080 M NH4Cl and .105 M NH3 before and after the addition of 1.00mL of 6.05 M HNO3

Why is the cosmic star formation history peaking at redshift around 2? Hint: think of which processes are more (or less) active before (or after).

Resto Corporation has authorized to issue$5,000,000 of its 8%, 5-year bonds On January 1, 2019, the bonds issued at 28/02/2019 plus accrued interest when the effective interest rate10%. The bonds interest is quartile onApril1, July 1, October1, and January 1. On July 1, 2020 after paid interest Resto purchased 40% of its issued bonds on the open market at $1,500,000 and cancelled them. Resto uses the effective interest rate method for amortization of bond premiums and discounts. Required: 1- Journalize the bonds issued on February 28, 2019? 2- Journalize all interest entries during 2019? 4- Journalize the entry for redemptions of bonds on July1, 2020and entries at 31, December 2020

Resto Corporation has authorized to issue$5,000,000 of its 8%, 5-year bonds On January 1, 2019, the bonds issued at 28/02/2019 plus accrued interest when the effective interest rate10%. The bonds interest is quartile onApril1, July 1, October1, and January 1. On July 1, 2020 after paid interest Resto purchased 40% of its issued bonds on the open market at $1,500,000 and cancelled them. Resto uses the effective interest rate method for amortization of bond premiums and discounts. Required: 1- Journalize the bonds issued on February 28, 2019? 2- Journalize all interest entries during 2019? 4- Journalize the entry for redemptions of bonds on July1, 2020and entries at 31, December 2020

Today is January 31, 2018. You forecasted the following cash flows (in millions) for a firm:

In addition, you are given the following data:

and

What is the equity value of the firm (in millions) using Discounted Cash Flow model? Hint: First, calculate the free cash flows and discount the free cash flows. Finally, subtract the net debt to obtain equity value.

On January 1, 2018, Patriots Co. awarded restricted stock units (RSUs) representing 30 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of $3 per share.

Required:

Determine the total compensation cost pertaining to the RSUs.

Prepare the appropriate journal entry to record the award of RSUs on January 1, 2018.

Prepare the appropriate journal entry to record compensation expense on December 31, 2018, December 31, 2019, and December 31, 2020.

Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2020.

At January 1, 2020, Betty DeRose, Inc. reported paid-in capital - treasury stock of $2,000 and retained earnings of $49,000. Betty DeRose, Inc. entered into the following transactions during 2020: a. Re-acquired 5,000 shares of its $8 par value common stock by paying $18 per share. b. Re-issued 900 of the shares that were re-acquired in (a) for $21 per share. c. Re-issued 1,200 of the shares that were re-acquired in (a) for $13 per share. d. Re-issued 800 of the shares that were re-acquired in (a) for $20 per share. e. Re-issued 1,100 of the shares that were re-acquired in (a) for $17 per share. Calculate the balance in the paid-in capital - treasury stock account after all five transactions above are recorded.