Reference no: EM132494784
Question 1: Go Corp. expects free cash flows of $1,000,000, $1,100,000, $1,200,000, $1,300,000, $1,400,000, in years 1,2 3,4, 5 respectively. In addition, Go has a continuing value of $2,500,000 at the end of year 5 and a cost of capital of 10%. Assuming year end cash flows, please bring these cash flows to present discounting at the weighted average cost of capital and place the answer below as the enterprise value for Go Corp.
Question 2: Lo Corp. has an enterprise value of $6,000,000, long term debt of $1,000,000, and an under-funded pension obligation of $800,000. If Lo has 50,000 shares outstanding (and no shares under option), please compute Lo's intrinsic value per common share.
Question 3: Assume the same information as the prior problem. In addition, Lo Corp. has 30,000 shares under option and "in the money". Use the denominator method and assume that all 30,000 option will be exercise (with no proceeds - because future grant will offset the proceeds). What is the new intrinsic value per common share?
|
Company degree of financial leverage
: During that timeframe, we figured out that her DOL was at 1.5. What was the company's degree of financial leverage?
|
|
Calculate any gain or loss on the disposal of the equipment
: Journalize the sale of the equipment, assuming straight-line depreciation was used. First, calculate any gain or loss on the disposal of the equipment
|
|
Calculate the minimum net business income carol
: Calculate the minimum net business income Carol would include in her 2019 personal income tax return. In preparing your solution, ignore GST and PST implication
|
|
How much can olin deduct on schedule
: The outstanding mortgage balance was $700,000. Their new mortgage is for $1.3 million. After the refinancing, the Starks's acquisition debt is
|
|
Discounting at the weighted average cost of capital
: Go Corp. expects free cash flows of $1,000,000, $1,100,000, $1,200,000, $1,300,000, $1,400,000, in years 1,2 3,4, 5 respectively.
|
|
What is the present value today of the future cash flows
: You have decided to discount these cash flows at a constant interest rate of 6.5%. What is the present value today of these future cash flows?
|
|
What is involved in preparing and reconciling employee group
: What is involved in preparing and reconciling employee group certificate amounts from salary records? Be sure to include an explanation on the end
|
|
What procedures are to reconcile total wages for pay period
: Explain how and what the procedures are to reconcile total wages for pay period, check and correct irregularities and refer to designated persons for resolution
|
|
Guarantee that you will be elected to the board
: There are currently 4 seats up for election. If the company uses cumulative voting, how much will it cost you to
|