Calculate emcs estimated value of operations

Assignment Help Business Management
Reference no: EM13721459

EMC Corporation has never paid a dividend. Its current free cash flow of $440,000 is expected to grow at a constant rate of 5.7%. The weighted average cost of capital is WACC = 14.25%. Calculate EMC's estimated value of operations. Round your answer to the nearest dollar

Reference no: EM13721459

Questions Cloud

Homeowners to ultimately request a new mortgage : The appropriate price of a bond is simply the sum of the cash flows to be received. Which of the following will typically require homeowners to ultimately request a new mortgage?
What are firms income tax liability and its after-tax income : The Talley Healthcare System had a taxable income of $365,000 from operations after all operating costs but before (1) interest charges of $50,000, (2) dividends received of $15,000, (3) dividends paid of $25,000, and (4) income taxes.
Crisp cookwares common stock is expected to pay a dividend : Crisp Cookware's common stock is expected to pay a dividend of $1.5 a share at the end of this year (D1 = $1.50); its beta is 0.75; the risk-free rate is 4.2%; and the market risk premium is 5%. The dividend is expected to grow at some constant rate ..
Stock is expected to have a year-end dividend : A stock is trading at $40 per share. The stock is expected to have a year-end dividend of $6 per share (D1 = $6), and it is expected to grow at some constant rate g throughout time. The stock's required rate of return is 16% (assume the market is in ..
Calculate emcs estimated value of operations : EMC Corporation has never paid a dividend. Its current free cash flow of $440,000 is expected to grow at a constant rate of 5.7%. The weighted average cost of capital is WACC = 14.25%. Calculate EMC's estimated value of operations. Round your answer ..
What is your estimate of the stocks current price : A company currently pays a dividend of $1 per share (D0 = $1). It is estimated that the company's dividend will grow at a rate of 25% per year for the next 2 years, then at a constant rate of 6% thereafter. The company's stock has a beta of 1.2, the ..
Roperty sell for at the end of the year to repay the loan : You are interested in a foreclosed property that a local bank is willing to sell for $150,000. You intend to hold the property for one year and then sell it. You expect to pay selling costs of $8,000. You are able to get an interest-only home equity ..
What is the stocks required rate of return : Nick's Enchiladas Incorporated has preferred stock outstanding that pays a dividend of $3 at the end of each year. The preferred sells for $50 a share. What is the stock's required rate of return (assume the market is in equilibrium with the required..
What is the required rate of return on a stock with a beta : Assume that the risk-free rate is 6% and that the market risk premium is 5%. What is the required rate of return on a stock with a beta of 0.8? Round your answer to two decimal places. What is the required rate of return on a stock with a beta of 2.5..

Reviews

Write a Review

Business Management Questions & Answers

  Organizational structure employed by the organization

Analyze the reason for the type of organizational structure employed by the organization

  Explain how would you approach pricing hummer vehicle

Explain how would you approach pricing the Hummer 3 sport-utility vehicle? Illustrate what elements of perceived value would be important in developing a market-based price? No word limit

  Strategic sourcing to improve their strategies

Strategic sourcing to improve their strategies.

  How investment-oriented the company is as well as cite

write a one-page memo on how investment-oriented the company is as well as cite your supporting evidence. By investment-oriented

  Minimizing the bus company''s salary

Estimate  how to minimize the bus company's salary, hiring, and firing costs over the next 5 years.

  Describe how the market for corn would be affected

Describe how the market for corn would be affected if ethanol, a corn derivative, was used to fuel cars in the United States.

  Theories of capital structure and risk

Explain why are some corporate financial managers reluctant to issue new common stock when funding long-term capital projects and what theories of capital structure help to explain this behavior?

  Describe how damages will be computed for each victim and

felix is a school bus driver. he is driving children home from school one day when he is distracted by a fight in the

  Explanation of new entry to market

Describe the modifications that you will need to make to your chosen item (i.e. Rack-mount Servers) in order to introduce it successfully to customers in Russia.

  Levels of conflict and how to reduce conflict

Describe the levels of conflict that may be present when individuals embrace the attributes of the diversity competency but those attributes are not shared by coworkers.

  Leadership1 bright fry and cooperrider state that behavior

leadership1. bright fry and cooperrider state that behavior is an artifact a reflection of intrinsic values beliefs and

  Illustrate what are requirements for agency interns

Illustrate what are Requirements for agency interns. Are there any Ethical dilemmas that are faced by the specific services provided by this agency and Legal requirements placed on the agency.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd