Estimate the enterprise value of the company

Assignment Help Accounting Basics
Reference no: EM132164779

Question - Corporation is expected to generate the following free cash flows over the next five years:

Year 1= 51.3

Year 2=67.5

Year 3=79.1

Year 4=75.4

Year 5=82.3

Thereafter, the free cash flows are expected to grow at the industry average of 3.7 % per year. Using the discounted free cash flow model and a weighted average cost of capital of 14.7%? Estimate the enterprise value of the company (rounded to 2 decimal places).

Reference no: EM132164779

Questions Cloud

Describe how each company treats their employees : Why do you believe each of the three companies did make the top 100 best companies list (for those on the list).
Describe how these issues negatively affect the project : Describe how these issues negatively affect the project, and what steps project managers can take to address these types of issues.
Write a prescription for a medication used to treat gerd : Write a prescription for a medication used to treat GERD. Be sure to indicate drug name, strength, amount per dose, route, frequency of dose
How should george respond : Recommends a specific George should take, directly answers the question "how should George respond?"
Estimate the enterprise value of the company : Thereafter, the free cash flows are expected to grow at the industry average of 3.7 % per year. Estimate the enterprise value of the company
Discuss about the primary goal of the constitution : A basic function of government and a primary goal of the constitution that creates the government is keeping people safe. It is often referred to as exercising.
The extent of george responsibility to take action : Articulates overarching ethical issues including the extent of George's responsibility to take action
Discuss about the pros and cons of the model : In this assignment, you will write two executive summaries(Files): one on Lean Six Sigma, and one on either Total Quality Management or Continuous Quality.
How much do you save in total interest paid : If you make a ONE TIME extra principle payment of $22,000 in period number 18, how much do you SAVE in total interest paid of the life of the loan

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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