Value of chickencousins equity

Assignment Help Finance Basics
Reference no: EM133068464

You are valuing ChickenCousins, a chain of fast food restaurants focusing on processed chicken dishes. You assume the following forecasts of items in the free cash flows of ChickenCousins:

 

Year 1

Year 2

Year 3

EBIT

40

50

60

Depreciation 

4

5

6

Capital expenditure

6

7

8

Change in net working capital

2

3

4

The firm's tax rate is 40% and its WACC is 10%. The company has debt worth 100. Calculate the free cash flows, and assume they will grow by 3% per year after Year 3. What is the value of the value of ChickenCousins' equity? Enter your answer as an integer. For example, if you find the value to be 123.4, enter 123.

Reference no: EM133068464

Questions Cloud

How different are accorhotels and airbnbs value proposition : Critically evaluate AccorHotels digital strategy and How effective do you think it is for competing against Airbnb?
Explain what is a capital asset for personal income tax : Explain what is a "capital asset" for personal income tax purposes? Also, define Section 1231, 1245 and 1250 property as they pertain to the tax code
Announcement of a dividend increase mean : Does the good news conveyed by the announcement of a dividend increase mean that a firm can increase its stock price in the long run simply by paying cash divid
Calculate the eps : Apc Lab is a company that operates in the domain of AR and VR for sports. It is considering additional financing of Rs.10,000. It currently has Rs.50,000 of deb
Value of chickencousins equity : You are valuing ChickenCousins, a chain of fast food restaurants focusing on processed chicken dishes. You assume the following forecasts of items in the free c
What quantity of production should be scheduled for February : Fleetwood is to sell 35k units in Jan, 25k in Feb. and 32k in Mar. What quantity of production should be scheduled for February
Calculate the actual direct labor rate paid per hour : The actual hours worked during August were 2,500, and the total direct labor budget variance was $1,300 unfavorable. Calculate the actual direct labor rate
Find the present value of the share : The earnings of a company have been growing at 15 percent over the past several years and are expected to increase at this rate for the next 7 years and thereaf
Calculate the total dividends for each year : Calculate the total dividends for each year and the amount paid to each class of shares, assuming the preferred dividend is NOT cumulative

Reviews

Write a Review

Finance Basics Questions & Answers

  What are the pros-cons of the given approach

Assuming he has agreed to have a budget completed for next year, he now wants to wait until December (fiscal and calendar year are the same).

  What will the expected return and beta be of the alpha stock

The total value of your current portfolio is $9,000. What will the expected return and beta on the portfolio be after the purchase of the Alpha stock?

  Explain the effect of this value being zero or negative

What is the intrinsic value of this option. Explain the effect of this value being zero or negative.

  How sense of humor is affected by an acupuncture treatment

Pick two items from your list of the factors that change from one day to the next, and describe how these changing factors could influence your scores in the research study.

  What is the total amount of dollars

The exercise price is $0.50. If the option is exercised, what is the total amount of dollars received (after accounting for the premium paid)?

  Sensitivity of npv to changes in quantity supplied

What is the sensitivity of NPV to changes in quantity supplied? (Do not round intermediate calculations and round your final answer to 2 decimal places.

  How much is the choice worth today

Ben just won the lottery and has a choice between accepting a lump sum payment of $5,000,000 or annual payments of $375,000 at the end of each year.

  What is the apr on a loan from american pride payday

What is the APR on a loan from American Pride Payday Loan Store? You've borrowed $200, with a payoff of $230 due in two weeks.

  What is the present value of winnings

You have just won the lottery and will receive $540,000 as your first payment one year from now. You will receive payments for 26 years.

  Calculate the volume variance on the revenue side

Consider the following data for Nebraska Medicine (in millions of dollars): Calculate the volume variance on the revenue side

  Determine the payback period

If your original monthly mortgage payment was $1,250 and your new monthly mortgage payment would be $1,150 after refinancing, determine the payback period.

  Benefits of the security guard training program

What are the main benefits of the security guard training program? Explain how you would conduct a cost-effectiveness evaluation and a cost-benefit evaluation.

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