Find the value of tlv corps share price

Assignment Help Accounting Basics

Reference no: EM132984250

Question: Your company has been hired to provide investment advice on TLV Corporation.

In the year just ended, TLV Corporation's revenue was $6 million, while the costs of goods sold, overhead, and admin were $2 million. Depreciation was $200,000.00 and the average tax rate 35%. In addition, TLV Corp invests 20% of its EBIT in property, plants, and equipment, and working capital each year. Revenues, costs, depreciation, and investments grow at a rate of 3% until the end of year 5 after which the growth slows down to 2.5%. The cost of unleveraged cash flows is 10%, and the return required by equity holders is 14%. A debt of TLV is $9 million, and there are 3 million shares outstanding.

Using the free cash flow approach, find the value of TLV Corp's share price.

Reference no: EM132984250

Questions Cloud

Discuss the communication techniques : Data are collected and presented on a continual basis. It is important to be able to communicate the data to your audience effectively. Appropriate data communi

Health and wellness training and mental health training : Describe what are Health and Wellness training and Mental Health training. As a manager what could you do to promote transfer for these training programs (list

Calculat operating income according to variable costing : Budgeted and actual production is 1600 units. Calculate the Operating Income according to both Absorption and Variable costing and explain the difference.

Measure relying on the management rights article : Explain why an employer may not be able to implement a measure relying on the management rights article in a collective agreement

Find the value of tlv corps share price : Find the value of TLV Corps share price - provide investment advice on TLV Corporation

Find 30 peer-reviewed academic journals : Please help me to find 30 peer-reviewed academic journals about the following question: Key ethical dilemmas and issues that have arisen from the impact of COVI

How do calculate the operating income for x ltd : Budgeted and actual fixed manufacturing costs. Calculate the Operating Income according to both Absorption and Variable costing and explain the difference

Effective communication of health and safety information : Explain the barriers you think might prevent effective communication of health and safety information

Calculate the banks total 2016 payroll cost for ann winters : Calculate Ann Winters' gross pay, payroll deductions and net pay during 2016 and Calculate the bank'stotal 2016 payroll cost for Ann Winters.

User Account

All Pages