CORPORATE VALUATION
Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly does not pay any dividends, and it has no plans to pay dividends in the near future. A major pension fund is interested in purchasing Brandtly's stock. The pension fund manager has estimated Brandtly's free cash flows for the next 4 years as follows: $2 million, $5 million, $10 million, and $15 million. After the fourth year, free cash flow is projected to grow at a constant 4%. Brandtly's WACC is 13%, the market value of its debt and preferred stock totals $40 million; and it has 20 million shares of common stock outstanding.
Write out your answers completely. For example, 13 million should be entered as 13,000,000.
What is the present value of the free cash flows projected
during the next 4 years? Round your answer to the nearest cent. Do
not round your intermediate calculations.
$
What is the firm's horizon, or continuing, value? Round your
answer to the nearest cent.
$
What is the firm's total value today? Round your answer to the
nearest cent. Do not round your intermediate calculations.
$
What is an estimate of Brandtly's price per share? Round your
answer to the nearest cent. Do not round your intermediate
calculations.
$
In: Finance
Viewing the return rate of lost letters as a measure of social responsibility in neighborhoods, a social psychologist intentionally ‘loses’ self-addressed, stamped envelopes near mailboxes. Furthermore, to determine whether social responsibility, as inferred from the mailed return rates, varies with the type of neighborhood, lost letters are scattered throughout three different neighborhoods: downtown, suburbia, and a college campus.
Letters are ‘lost’ in each of the three types of neighborhoods according to procedures that control for possible contaminating factors, such as the density of pedestrian traffic and mailbox accessibility. (Ordinarily, the social psychologist would probably scatter equal numbers of letters among the three neighborhoods, but to maximize the generality of the current example, we will assume that a total of 200 letters were scattered as follows: 60 downtown, 70 in suburbia, and 70 on campus.) Each letter is cross classified on the basis of the type of neighborhood where it was lost and whether or not it was returned. For instance, of the 60 letters lost downtown, 39 were returned, while of the 70 letters lost in suburbia, 40 were not returned. When observations are cross classified according to two qualitative variables, as with the lost letter study, the test is a two-variable test. Answer the following.
A) Defined null and alternative hypothesis?
B) Obtain all expected frequencies from table of observed frequencies?
C) Find test statistic value?
D) Identify degrees of freedom?
E) Find the chi-squared value?
F) What is the conclusion?
In: Statistics and Probability
Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly does not pay any dividends, and it has no plans to pay dividends in the near future. A major pension fund is interested in purchasing Brandtly's stock. The pension fund manager has estimated Brandtly's free cash flows for the next 4 years as follows: $4 million, $6 million, $12 million, and $14 million. After the fourth year, free cash flow is projected to grow at a constant 7%. Brandtly's WACC is 13%, the market value of its debt and preferred stock totals $42 million; and it has 21 million shares of common stock outstanding.
Write out your answers completely. For example, 13 million should be entered as 13,000,000.
In: Finance
Wk 2 - Compensation Evaluation Assignment Content Resource: Compensation Evaluation Grading Guide You were hired to work as a HR consultant for a small local hospital, with the task of expanding the workforce of certified medical assistants. Looking at the current three employees, you find a discrepancy in compensation between Susi, a 2-year employee at $28,000; Tom, 5-year employee at $27,000; and Raul, a 10-year employee at $33,000. All are employed as certified medical assistants, yet they all earn different salaries. According to survey data, all three employees are below the market rate for this job in the local job market. All three employees are also exemplary employees with near perfect scores in their most recent performance evaluation. Write a 700- to 1,050-word paper that includes the following: Explain the discrepancy in pay among the current employees. Describe the strategy you would take to correct the internal equity issue. Describe the strategy you would take to correct the external equity issue. Explain how you will ensure new hires will be paid equitably, both internally and externally. Explain how an organization's Total Compensation strategy affects its financial operations and its ability to attract, motivate, and retain top talent. Cite all sources according to APA formatting guidelines.
In: Operations Management
CORPORATE VALUATION
Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly does not pay any dividends, and it has no plans to pay dividends in the near future. A major pension fund is interested in purchasing Brandtly's stock. The pension fund manager has estimated Brandtly's free cash flows for the next 4 years as follows: $2 million, $5 million, $9 million, and $16 million. After the fourth year, free cash flow is projected to grow at a constant 3%. Brandtly's WACC is 12%, the market value of its debt and preferred stock totals $62 million; and it has 14 million shares of common stock outstanding.
Write out your answers completely. For example, 13 million should be entered as 13,000,000.
In: Finance
CORPORATE VALUATION
Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly does not pay any dividends, and it has no plans to pay dividends in the near future. A major pension fund is interested in purchasing Brandtly's stock. The pension fund manager has estimated Brandtly's free cash flows for the next 4 years as follows: $2 million, $5 million, $9 million, and $16 million. After the fourth year, free cash flow is projected to grow at a constant 3%. Brandtly's WACC is 12%, the market value of its debt and preferred stock totals $62 million; and it has 14 million shares of common stock outstanding.
Write out your answers completely. For example, 13 million should be entered as 13,000,000.
In: Finance
CORPORATE VALUATION
Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly does not pay any dividends, and it has no plans to pay dividends in the near future. A major pension fund is interested in purchasing Brandtly's stock. The pension fund manager has estimated Brandtly's free cash flows for the next 4 years as follows: $2 million, $6 million, $11 million, and $15 million. After the fourth year, free cash flow is projected to grow at a constant 8%. Brandtly's WACC is 10%, the market value of its debt and preferred stock totals $58 million; and it has 17 million shares of common stock outstanding.
Write out your answers completely. For example, 13 million should be entered as 13,000,000.
In: Finance
Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly does not pay any dividends, and it has no plans to pay dividends in the near future. A major pension fund is interested in purchasing Brandtly's stock. The pension fund manager has estimated Brandtly's free cash flows for the next 4 years as follows: $4 million, $5 million, $9 million, and $15 million. After the fourth year, free cash flow is projected to grow at a constant 4%. Brandtly's WACC is 12%, the market value of its debt and preferred stock totals $44 million; and it has 19 million shares of common stock outstanding.
Write out your answers completely. For example, 13 million should be entered as 13,000,000.
In: Finance
Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly does not pay any dividends, and it has no plans to pay dividends in the near future. A major pension fund is interested in purchasing Brandtly's stock. The pension fund manager has estimated Brandtly's free cash flows for the next 4 years as follows: $2 million, $6 million, $8 million, and $14 million. After the fourth year, free cash flow is projected to grow at a constant 4%. Brandtly's WACC is 10%, the market value of its debt and preferred stock totals $44 million; and it has 19 million shares of common stock outstanding.
Write out your answers completely. For example, 13 million should be entered as 13,000,000.
Please do not answer if you are not sure, THANK YOU! :)
In: Finance
randtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly does not pay any dividends, and it has no plans to pay dividends in the near future. A major pension fund is interested in purchasing Brandtly's stock. The pension fund manager has estimated Brandtly's free cash flows for the next 4 years as follows: $4 million, $5 million, $8 million, and $16 million. After the fourth year, free cash flow is projected to grow at a constant 4%. Brandtly's WACC is 14%, the market value of its debt and preferred stock totals $62 million; and it has 7 million shares of common stock outstanding. Write out your answers completely. For example, 13 million should be entered as 13,000,000. What is the present value of the free cash flows projected during the next 4 years? Round your answer to the nearest cent. Do not round your intermediate calculations. $ What is the firm's horizon, or continuing, value? Round your answer to the nearest cent. $ What is the firm's total value today? Round your answer to the nearest cent. Do not round your intermediate calculations. $ What is an estimate of Brandtly's price per share? Round your answer to the nearest cent. Do not round your intermediate calculations. $
In: Finance