Calculate the value of Kendra operations

Assignment Help Finance Basics
Reference no: EM132897994

Problem - Value of Operations - Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 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?

b. Calculate the value of Kendra's operations.

Reference no: EM132897994

Questions Cloud

Calculate EMCs estimated value of operations : Value of Operations: Constant Growth - The weighted average cost of capital is WACC = 12%. Calculate EMC's estimated value of operations
Difference between bivariate and multivariate functions : What is the difference between bivariate and multivariate functions?
Describe the impact of a global currency : The objective of this assignment is to describe the impact of a global currency on the world.Discussion Topic
How two different graphs may apply to current-news articles : How two different graphs may apply to current-news articles (not a blog, not Wikipedia, not an opinion article, not from a journal) that implicitly
Calculate the value of Kendra operations : Free cash flow is projected to be $80,000 and $100,000 for the next 2 years, respectively; Calculate the value of Kendra operations
Assess the performance and potential of an economy : Business managers use several indicators to assess the performance and potential of an economy. Identify and justify the three most important measures of an eco
Discussion - hiv/aids health care : How much is it estimated that the states and the U.S. government pays for HIV/AIDS health care. Is the government looking at ways to stop the spread
Explain a pert chart for the production : Design, draw, and explain a PERT chart for the "production" of any culture's wedding and reception. Be as detailed as possible. Where is the critical path? Why?
Examples of baked-in knowledge in financial workflow : Provide at least three examples of baked-in knowledge in financial workflow and the utility of baked-in knowledge.

Reviews

Write a Review

Finance Basics Questions & Answers

  Should smc make this investment explain

Conduct sensitivity analysis on the NPV to the variables: selling price, variable cost, fixed cost, investment cost, net working capital, and discount rate

  What is the npv of project

The tax rate is 25%, and the required return is 11%. What is the NPV of this project?

  Which one should be undertaken if they are independent

A group of engineers responsible for developing advanced missile detection and tracking technologie. Determine which one(s) should be undertaken, if they are ( a ) independent and ( b ) mutually exclusive.

  Ideas for new offerings from broad reach sailing

Create some ideas for new offerings from Broad Reach Sailing. Decide if it makes sense to take on new partners and what the pros and cons

  If sales increase by 30 change in earnings before

you have developed the following pro forma income statement. it represents the most recent years operations. the

  Should the firm assign to this equipment as an initial cost

When evaluating the expansion option, what value, if any, should the firm assign to this equipment as an initial cost of the project?

  What lump sum deposited today

What lump sum deposited today at 8% compounded quarterly for 10 years will yield the same final amount as deposits of $4000 at the end of each 6 month period for 10 years at 4% compounded semiannually?

  Cash flow will generate by both projects

It is forecasted that following cash flow will generate by these both projects in coming 5 years. Firm cost of capital is 10%.

  What is the pv of $100 received in:

What is the PV of $100 received in:

  Belgacom stock options or google stock options

Would it be better to have Belgacom stock options or Google stock options? Why?

  Calculate the standard deviation of the portfolios

Calculate the standard deviation of the portfolios.

  What is the volatility of the portfolio

What is the volatility of the portfolio as the number of stocks becomes arbitrarily large? What is the average correlation of each stock within.

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