Determining firm-s expected free cash flow to equity

Reference no: EM1310275

1) A firm presently has sales per share of= $10.00 and expects sales to rise by 25% next year. Net profit margin is expected to be 15%. Fixed capital investment net of depreciation is projected to be 65% of sales increase and working capital needs are 15% of projected sales increase. Debt will finance 45% of investments in net capital and working capital. Company has the 11% required rate of return on equity. Determine the firm’s expected free cash flow to equity (FCFE) per share next year under these suppositions?

2) The difference between free cash flow to equity and free cash flow to firm is? The repayments of the significant amount of outstanding debt will, other things being equal, cause free cash flow to equity to?

Reference no: EM1310275

Questions Cloud

Write a paper on examining human service interactions : Write a paper on examining human service interactions in terms of macro systems-communities and organizations. . Describe the concept of personal, interpersonal, and political empowerment. .

Shares of common stock outstanding : Calculate the Earnings per share (EPS) for each level of sales, the expected EPS, the standard deviation of the EPS, and the coefficient of variation of EPS, assuming that there are $10,000 shares of common stock outstanding,

Writing the page memorandum : Write down a one-half page memorandum (at least 2 paragraphs) to Terrio explaining why the $6,000 loss on sale of Blackhawk stock is

The barbell rotates clockwise about its own center : Four identical masses of mass 710 kg each are placed at the corners of a square whose side lengths are 15.0 cm. What is the magnitude of net gravitational force on one of the masses, due to the other three.

Determining firm-s expected free cash flow to equity : Determine the firm’s expected free cash flow to equity (FCFE) per share next year under these suppositions?

Show the accounts and changes : Show the accounts and changes, if any, that will result if the firm pays the dividends indicated in parts a and b. show the effects of $80,000 cash dividend on stockholders' equity.

What force is required to hold it completely : A thin flat plate is installed in a water tunnel as a splitter. The plate is 0.3 m long and 1 m wide. The free stream speed is 1.60 m/s. laminar boundary layers form on both sides of the plate. The boundary-layer velocity profile is approximated as p..

What is the mass of fish : What is the largest wavelength that will give constructive interference at an observation point 171 from one source and 295 from the other source.

Journal entries for fund and government financial statement : Provide all required journal entries for fund and government-wide financial statements. What information do the government-wide financial statements present? What information do the fund out financial statements present?

User Account

All Pages