Determine the weighted average cost of capital

Assignment Help Corporate Finance
Reference no: EM131489481

You run a Multinational Corporation and you are looking at buying a company in Japan which possesses a current free cash flow of $150 Million growing at 9% each year. How much would you pay for this company?

Use the Capital Asset Pricing Model (CAPM), determine the Weighted Average Cost of Capital (WACC) and then discount the free cash flows that you will determine after applying the growth.

Examine the 10k annual report and use the Capital Asset Pricing Model to Calculate the Weighted Average Cost of Capital.

10K annual report data:

https://www.sec.gov/Archives/edgar/data/21344/000002134416000050/a2015123110-k.htm

Along with the calculation need a 400-word report on the same?

Reference no: EM131489481

Questions Cloud

Determine the value of force when the rod begins to yield : An axial force is then gradually applied. Determine the value of force when the rod begins to yield.
Job in conducting monetary policy : The Fed's job in conducting monetary policy is made harder by the fact that:
Explain the significance of market failure : Explain the significance of market failure, public goods, externality, negative externality, and positive externality.
What factors influence the demand for this product : What factors influence the demand for this product? What factors influence the supply of this product?
Determine the weighted average cost of capital : Use the Capital Asset Pricing Model (CAPM), determine the Weighted Average Cost of Capital (WACC) and then discount the free cash flows
Is the set of claims an argument : Is the set of claims an argument? Did the translation of the original claims reveal statement was a different kind of statement than you originally believed?
List and explain the reasons why markets fail : Explaining Why do markets need both adequate competition and adequate information?
Why is it important that prices are flexible in our economy : Why is it important that prices are flexible in our economy? Do you think the government should control the level of prices for products that are really important, ie. gasoline?
Supply change throughout the banking system : If the reserve requirement for a bank is 10% and the Federal Reserve buys $100M more in bonds, will the money supply increase or decrease

Reviews

Write a Review

Corporate Finance Questions & Answers

  Find a portfolio for smallest standard deviation

Karen's portfolio has a beta of 1.02, consists of 3 mutual funds. The international fund has a beta of 1.5 and makes up to 20 percent of the portfolio.

  Find total gross profit margin in dollars per unit

Nevada Corporation provided the following data regarding its only product: Determine the total gross profit margin (gross profit) for this product?

  Estimate the average annual inflation rate

Estimate the expected real rate of return on the ten year U. S. Treasury bond - estimate the average annual inflation rate expected by investors over the life of the thirty year bond.

  Determine the impact if amazon had split up

Determine the impact if Amazon.com had split up and become a family of brands (for example, "Amazon" for books, "Supertoys" for toys, etc.), each with a different public face but all run by the same parent company.

  Describe how the free cash flows approach can produce

Describe how the free cash flows approach can produce valuations of firms when they are expected to generate negative free cash flows over the next five years.

  Consider a 6 coupon bond that matures in 20 years what

consider a 6 coupon bond that matures in 20 years. what would be the value of this bond if interest rates fall to 5 the

  When is the market for money in equilibrium

Show on a graph how the interest rate and the quantity demanded of money are related.- Do the same for the quantity supplied of money.

  Examine industrys price-earnings ratio and dividend yield

From the e-Activity, examine each industry's price-earnings ratio and dividend yield. Determine whether or not the differences make sense in light of their different stages in the industry life cycle. Support your position.

  How many shares would have to be issued

How many shares would have to be issued? What is the dollar size of the issue and assuming that the market price of the firm's stock is $95, and flotation costs are 10 percent of the market price

  Prepare an income statement using variable costing

Prepare an income statement using absorption costing. Prepare an income statement using variable costing. Reconcile the difference between the two income statements.

  Vertical and horizontal analysis of the balance sheets

Vertical and Horizontal analysis of the Balance Sheets for the past three years (all yearly balances set as a percentage of total assets for that year).

  Does the project satisfy the kaldor-hicks criterion

What is the net present value of the project? Does the project satisfy the Kaldor-Hicks criterion and what is the relative internal weight on the underprivileged group

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