User Account

All Pages

Estimate the value of each

Assignment Help Financial Accounting
Reference no: EM132959340

On 30 June 2021 you obtained the following information for J Ltd:

The estimated company cost of capital under an imputation system of tax to be applied to cash flows after tax is 10% (assuming the effective tax rate is 30%)

The free cash flows before tax for the year ended 30 June 2021 are:

Cash receipts from operations $543m

Less cash payments from operations $434m

Less net cash flows investment activities $ 43m

Free Cash flows before tax $ 66m

  • The number of shares outstanding 231.46 million
  • The net debt reported in the statement of financial position (balance sheet) is $141.5 million
  • Federal treasury was forecasting economic growth after COVID-19 of 4.5% for the year ended 30 June 2022.

Required:

Problem 1: Assuming that the free cash flows of J Ltd are sustainable and are expected to grow perpetually at the current forecast long term nominal interest rate, estimate the value of each

Reference no: EM132959340

Questions Cloud

What is the nuremberg code : How did the Lacks family, the media, and the general population view the medical community during the 1950s?
How risk is managed in a human resource plan : How does suitable technology and systems support human resource programs and practices
Calculate the discounted payback period for the proposed : Calculate the discounted payback period for the proposed investment. Castle Ltd is attempting to evaluate the feasibility of investing $450,000
What is a selection test : What is a selection test and why it is important on staffing process?
Estimate the value of each : J Ltd are sustainable and are expected to grow perpetually at the current forecast long term nominal interest rate, estimate the value of each
How does the strategy perform as a risk management technique : JONO is entitled to sell the gold, How does this strategy perform as a risk management technique, if three months' time the price of the gold is $270/oz.?
Do you think there are systemic risks : Do you think there are systemic risks in the current housing market that could cause the financial crisis as what happened in the 2008 subprime mortgage
Access to psychological treatment : What are the ways or means to overcome the stigma of mental illness and access to psychological treatment?
How does the new staffing pattern productivity : How does the new staffing pattern productivity compare with productivity in the original staffing plan on a unit cost ($ per patient day) basis?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd