What is its enterprise value

Assignment Help Financial Management
Reference no: EM131603193

Victoria Enterprises expects earnings before interest and taxes (EBIT) next year of $1.7 million. Its depreciation and capital expenditures will both be $287,000, and it expects its capital expenditures to always equal its depreciation. Its working capital will increases by $54,000 over the next year. Its tax rate is 35%. If its WACC is 8% and its FCFs are expected to increase at 5% per year in perpetuity, what is its enterprise value?

The company's enterprise value is $ (Round to the nearest dollar.)

Reference no: EM131603193

Questions Cloud

Evaluate sets of mutually exclusive projects : What is the problem that can occur when using multiple time-value-of-money techniques to evaluate sets of mutually exclusive projects?
What is the sustainable rate of growth : he company has a total asset turnover ratio of 0.813 and a debt -equity ratio of 0.47. What is the sustainable rate of growth
Coupon bond with fifteen years left to maturity : Compute the price of a 6.9 percent coupon bond with fifteen years left to maturity and a market interest rate of 8.0 percent.
What is the handbag direct material price variance : Last year, Vera Corporation budgeted for production and sales 20,000 cloth handbags. What is the handbag's direct material price variance
What is its enterprise value : Victoria Enterprises expects earnings before interest and taxes (EBIT) next year of $1.7 million. what is its enterprise value?
What is the difference between swap and derivative : What is the difference between a swap and a derivative?
Find the manufacturing overhead budget for the same period : Ash Company manufacturers telephone handsets under various brand names. A manufacturing overhead budget for the same period
Prepare pronghorn journal entry to record profit or loss : Prepare Pronghorn's journal entry to record profit or loss, if any, using (a) the percentage-of-completion method
Compare the views of management and accountants : Compare and contrast the views of management and accountants regarding the changes required by the Sarbanes-Oxley Act on internal controls

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the price of the stock on the given dates

Calculate the price of the stock on the following dates: March 30, 2009; March 30, 2013; and September 30, 2010.

  What about interest rates and the general consumer

Suppose a new and more liberal Congress and administration are elected. What about interest rates and the general consumer?

  Competitive market verus monopolistic market

what part does a competitive market verus a monopolistic market have to do with this?

  Compute the current yield and the yield to maturity

Draw the timeline for a 12-year 4% annual coupon bond with a face value of $1000. Compute the current yield and the yield to maturity for the bond assuming the price is:

  How can we prevent another such scenario in the future

How did we get into this condition? What did we do to get out of it? How can we prevent another such scenario in the future?

  Increase interest rates and lower the price of bonds

The Treasury currently had a $0.9 trillion dollar deficit in Fiscal 2013 so the US government was issuing new long term securities (borrowing to cover the deficit) at an average rate of $75 billion per month. This decreases the money supply which sho..

  What about the portfolio beta.

If a portfolio has a positive investment in every asset, what about the portfolio beta? Is the portfolio beta less than that of every asset in the portfolio?

  The spot exchange rate and forward exchange rate

Suppose on July 1st, 2003, Porsche expected $1 million sales from the U.S. at the end of July. On July 1st, 2003, the spot exchange rate was $1.1362/€, the 30-day forward exchange rate was $1.1400/€, and the 60-day forward exchange rate was $1.1450/€..

  Discuss each instruments and potential losses

Choose an index of potential derivatives instruments to include in portfolio. Write a short discussion of each instrument and the potential. Discuss each instruments and potential losses. Discuss the performance of instruments.

  How much will you pay in interest and pay in principal

How much will you pay in interest, and how much will you pay in principal, during the first month, second month, first year?

  Established agricultural commodities firm

Agnes Chin is the chief financial officer of Grains Corp., an established agricultural commodities firm. The futures contracts traded at the exchange expire in

  What are the order costs

Louise Manufacturing uses 2,700 switch assemblies per week and then reorders another 2,700. The relevant carrying cost per switch assembly is $11.00, and the fixed order cost is $1,350. What are the current carrying costs? (Do not round intermediate ..

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