Discounted cash flow model

Assignment Help Finance Basics
Reference no: EM132149232

Based on the following JBH's projected free cash flows to equity holders between 2019 and 2021, what is the total equity value of JBH using the discounted cash flow model if analysts forecast the company's free cash flows to equity holders will grow at 5% p.a. constantly beyond the forecast horizon, assuming that JBH's cost of equity is 15%? (Rounding up numbers to 2 decimal places, and showing the workings of calculations) 

2019F 2020F 2021F

Free cash flow to equity holders 161 561 159 916 122 467

Reference no: EM132149232

Questions Cloud

Calculate the expected return for rose berry : Calculate the Expected Return for Rose Berry's portfolio in both the Boom and Recession state
Calculate the required return : a) Calculate the required return (ie Expected Return) for Pacific Blue Limited.
What is the after-tax cost of debt : a) What is the after-tax cost of debt? b) What is the WACC under an imputation tax system
Free cash flows to equity holders : What is the equity value of TOY at the end of 20X4A using the discounted cash flow model if analysts forecast the company's free cash flows to equity holders
Discounted cash flow model : Based on the following JBH's projected free cash flows to equity holders between 2019 and 2021, what is the total equity value of JBH using the discounted cash
What is the expected return of market portfolio : The expected return on the market is 12% p.a. Based on the information provided, answer the following questions.
Cash flows are after tax and depreciation : These two companies are investigating similar projects (but not both projects) in which they will invest. The characteristics of the two systems are given below
What must the coupon rate be on these bonds : The bonds make semiannual payments. What must the coupon rate be on these bonds?
Calculate the total amount becky would pay : Calculate the total amount Becky would pay under the current policy. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Reviews

Write a Review

Finance Basics Questions & Answers

  Determining the future and present values

Write down the advantages and limitations of financial management of future and present values of money, annuities, interest rates, uneven cash flow, and amortization?

  Identify your business as either a service

Identify your business as either a service or a products business. ? Describe the inputs, operations processes, and outputs that pertain to your operations. ? Describe how will you address customer needs

  Describe each of three components of securitys expect return

Explain the relationship between the security market line and market efficiency. Identify and describe each of the three components of a security's expected return according to the capital asset pricing model.

  A bond issued by ibm on december 1 1996 is scheduled to

a bond issued by ibm on december 1 1996 is scheduled to mature on december 1 2089. if today is december 2 2012 what is

  Which risk is measured by the standard deviation of profit

1. Which risk is measured by the standard deviation of profitability? a. Stand-alone risk b. Market Risk c. Total Risk d. None of the above

  You buy 600 shares of stock at a price of 68 and an initial

you buy 600 shares of stock at a price of 68 and an initial margin of 75 percent. if the maintenance margin is 30

  Advantages and disadvantages of mergers and acquisitions

What are the advantages and disadvantages of mergers and acquisitions to the economy and what are some ways the government is involved in them, and should the government be more or less involved?

  What is the beex in one year

What is Jacque's C$ profit or loss over the year

  Finance division of a technology corporation

Imagine that you have completed an internship in the finance division of a technology corporation -  evaluate your financial knowledge and has provided

  How globalization in worlds good market affected world trade

How has globalization in the world's goods markets affected world trade? How has globalization in the world's financial markets affected world trade?

  Show eastland new balance sheet after the company sells

Show Eastland's new balance sheet after the company sells 1 million new common shares in early 2007 to net $30 a share. Part of the proceeds, $10 million, is used to reduce current liabilities, and the remainder is temporarily deposited in the compan..

  Risk-free rate to find the required return on the stock

First, calculate the risk-free rate using the pure rate and the inflation premium. Next, use this risk-free rate to find the required return on the stock

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