Calculate the value of brooks operations

Reference no: EM13262356

Brooks Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,00 for the next 2 years, respectively; after the second year, FCF is expected to grow at a constant rate of 8%. The company's weighted average cost of capital is 12%.

a. What is the terminal, or horizon, value of operations? (Hint: Find the value of all free cash blows Year 2 discounted back to Year 2.)

b. Calculate the value of Brook's operations.

Reference no: EM13262356

Questions Cloud

What is the dividend amount : Reynolds Metals common stock is selling for $25 a share and has a dividend yield of 3.1 percent. What is the dividend amount?

Derive expressions for the new potential difference : A parallel plate capacitor has plates of area A and seperation of d and is charged to a potential difference of V.Derive expressions for the new potential difference

What was the most recent dividend per share paid on stock : what was the most recent dividend per share paid on the stock?

What is most common technique used to correct power factor : In a typical commercial electrical distribution system, which is more common: an inductive power factor, or a capacitive power factor. What is the most common technique used to correct this kind of low power factor.

Calculate the value of brooks operations : What is the terminal, or horizon, value of operations? (Hint: Find the value of all free cash blows Year 2 discounted back to Year 2.)

Find the energy of photon emitted as a result of transition : A hydrogen atom in a state having a binding energy (the energy required to remove an electron) of 0.544 eV makes a transition to a state, What is the energy of the photon emitted as a result of the transition

What will be the effect of price increase on the firm fcf : Management anticipates an increased working capital need of $3,000 for the year. What will be the effect of the price increase on the firm's FCF for the year?

How do graphical representations relate to the phase angles : When making an impedance diagram, does inductive reactance go on the positive Y-axis, or the negative Y-axis. How about capacitive reactance. How do these graphical representations relate to the phase angels of the reactances.

Determine thickness of aluminum thinfilm based on parameters : A quartz crystal microbalance (QCM) was employed in a vacuum deposition process, where a thin film of aluminum was grown over a p-Si wafer. The oscillator frequency at the start of the process was 10.0050 MHz.

User Account

All Pages