User Account

All Pages

Firm equity value per share

Assignment Help Finance Basics
Reference no: EM133111897

Assume you have a company that has the following financials for fiscal year 2020:

$300 million in cash

$600 million in book value of debt

$500 million in market value of debt

The company will generate a net income of $350 million and a free cash flow of $200 million in 2021. The growth rates of the free cash flows will be 4% in 2022 (e.g., year 2022 FCF = (1+4%)*year 2021 FCF), 2% in 2023 (e.g., year 2023 FCF = (1+2%)*year 2022 FCF), and -3% (yes, negative growth rate) per year after 2023. If the cost of equity is 12%, the weighted average cost of capital is 10%, and the firm has 100 million shares outstanding in 2020, then the firm's equity value per share as of 2020 is $___.

Reference no: EM133111897

Questions Cloud

What is the cd-equivalent yield : Suppose a 6-month Treasury bill is priced with a yield on a bank discount basis of 3.31%. The bill will mature in 181 days.
What is the after-tax cost of debt on crandal bonds : Crandal Dockworks is undergoing a major expansion. The expansion will be financed by issuing new 15-year, $1,000 par, 9% annual coupon bonds. The market price o
Purchase a condominium or lease an apartment : You have accepted your first job in Calgary. You are told it is a three-year contract and you have to decide to purchase a condominium or lease an apartment. Yo
Purchase a condominium or lease an apartment : You have accepted your first job in Calgary. You are told it is a three-year contract and you have to decide to purchase a condominium or lease an apartment. Yo
Firm equity value per share : Assume you have a company that has the following financials for fiscal year 2020:
Find cash value of an asset : What would be the cash value of an asset, if it is paid in 4 quarterly installments of $ 100, plus a final payment of $ 200 made a quarter after the last instal
What amount of income from the investment should be reported : The investee's net income for the year ended December 31, 2020 was P1, 200,000 earned evenly throughout the year. What amount of income from the investment
What would be the cash value of an asset : What would be the cash value of an asset, if it is paid in 4 quarterly installments of $ 100, plus a final payment of $ 200 made a quarter after the last instal
Dcf and comparable methods : Valuation of "cars.com" company (use DCF and comparable methods based on the data before the IPO, compare your valuation with the valuation in the final prospec

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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