Cash flow valuation-phillips industries

Assignment Help Finance Basics
Reference no: EM133074997

Cash Flow Valuation

Phillips Industries runs a small manufacturing operation. For this fiscal year, it expects real cash ?ows of $192,000. The companyr is an ongoing operation, but it expects competitive pressures to erode its real cash flows at 4 percent per year in perpetuity. The appropriate real discount rate for the company is 10 percent All cash flows are received at 1year-end.

What is the present value of the cash flows from the company's operations? {Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.}

Reference no: EM133074997

Questions Cloud

Higher level of interest rate risk : Two bonds both have a 7% coupon rate. Bond A has a longer maturity than Bond B. Which bond has the higher level of interest rate risk?
Explain the internal rate of return method : In a construction job that is expected to last 4 years, a conveyor with a cost of $ 10,000 is proposed as an alternative for handling materials; with annual ope
What familiar with data analysis methods : Now that you have become somewhat familiar with data analysis methods, which one appeals to you the most, and is one you would like to try in a research study?
How much is the company paid by the three policies : A company has three buildings and the corresponding insurance: (() building A is covered by a property insurance of which maximum indemnity is $10,000; (ii) bui
Cash flow valuation-phillips industries : Phillips Industries runs a small manufacturing operation. For this fiscal year, it expects real cash ?ows of $192,000. The companyr is an ongoing operation, but
How much is it worth when redeemed in five years : You invest $2,000 in a certificate of deposit. It pays an annual rate of 6.6%, compounded quarterly. How much is it worth when redeemed in five years
Some future trends in public health : What are some future trends in public health? Is the current health care system prepared for them?
Find the value today of the cash flow stream : Find the value today of the following cash flow stream. Assume an interest rate of 12%. Yr. 1 = $700, yr. 2 = $400, yr. 3 = $900, yr. 4 = $1,240
What is the cost of debt using book valuation : Question - The market situation: The risk-free rate is 5% and the market risk premium is 8%. What is the cost of debt using Book Valuation

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the cost of haroldson inc new common stock

Flotation costs on new stock sales are 5% of the selling price. What is the cost of haroldson inc's new common stock?

  Illustrate how book value each share

Illustrate how book value each share, earning each share also dividends each share change over years.

  How well do you think pjmc is doing

Forecasting the future is obviously a daunting challenge. All things considered, how well do you think PJMC is doing?

  What are corporate debt rating systems

What are Corporate Debt Rating Systems? Why is it important to monitor ratings over time?

  Compute the horsepower input of the test pump

The discharge pipe is 5 ft above the suction pipe. The discharge of water through the pump is measured to be 4 ft3 /s. Compute the horsepower input of the test pump.

  Do you think it is right to use violence to defend

Do you think it is right to use violence to defend your family? Is it right to attack someone who threatens your family's safety? Why? What does it depend on?

  What is the project expected npv

Texas Wildcatters Inc. (TWI) is in the business of finding and developing oil properties, then selling the successful ones to major oil companies.

  What are the four annual deposits

What are the four annual deposits that Canden should make at the beginning of each year. Round your answers to the nearest whole dollar.

  What is the reduction in the outstanding cash balance

It takes Cookie Cutter Modular Homes, Inc., about six days to receive and deposit checks from customers. The company's management is considering a lockbox syste

  Determining the equity securities

Company A's earnings and dividends per share are expected to grow indefinitely by 5% a year. If next year's dividend is $10 and the market capitalization rate

  Sowing the seeds of corporate social responsibility

In "Sowing the seeds of corporate social responsibility" (Neisser, 2016), the article about Cargill concludes by wondering if the company's actions

  Differences in servant leadership in different cultures

Please explain the differences in servant leadership in different cultures.

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