User Account

All Pages

Calculate the value of an ordinary share of quinn holdings

Assignment Help Financial Accounting
Reference no: EM132636403

The chief financial officer (CFO) of Quinn Logistics wants to determine the value of its shares using the free cash flow method. The CFO calculated the free cash flows for the period 2015- 2019 as follows:

Quinn Holdings: Free cash flows 2015-2019

Year FCF2015-2019

2015 R650 000

2016 R720 000

2017 R775 000

2018 R825 000

2019 R 880 000

Additional information:

  1. FCF growth after 2019 to infinity 5%
  2. Weighted average cost of capital (WACC) 11%
  3. Market value of debt R4 200 000
  4. Market value of preference shares R1 200 000
  5. Number of ordinary shares issued 200 000

Required:

Question 1: Apply the free cash flow method to the information provided by the CFO to calculate the value of an ordinary share of Quinn Holdings. Show all calculations and round off all values to the nearest whole number.

Reference no: EM132636403

Questions Cloud

Identify the intervention and the market failure leading up : Write a 700- to 1,050-word summary of your analysis. Identify the intervention and the market failure leading up to the intervention. Complete the following in.
What ideal price should be offered to get the lowest price : The buyer is obliged to give away = 100 kg from purchase. What ideal price should be offered to get the lowest possible purchase price to maximize the profit.
What could be an example of a criminal justice policy : What could be an example of a criminal justice policy that comes in conflict with constitutional protections. What is the conflict? How the conflict should it b
What are the basic facts of the case new jersey : What are the basic facts of the case New Jersey v T.L.O, legal issues raised in the case, and whether the case involved a violation of individual rights
Calculate the value of an ordinary share of quinn holdings : Apply the free cash flow method to the information provided by the CFO to calculate the value of an ordinary share of Quinn Holdings
Free exercise clause and the establishment clause : What is the difference between the Free Exercise Clause and the Establishment Clause? Under what circumstances is each clause used?
How is vaccination policy a collective action problem : Vaccination policy is a major issue in which government regulations are both necessary and controversial. The science is clear: vaccines work. Vaccines are the
Create a strategy that would help mitigate the challenges : Discuss three (3) inventory factors that you believe could present problems for a business. Next, create a strategy that would help mitigate these challenges.
Role of advertising in american elections : Do negative ads make citizens more or less likely to participate? Should there be additional rules for political advertising?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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