Reference no: EM132991554

Problem 1 - Suppose Boyson Corporation's projected free cash flow to equity for next year is FCFE1 = P150,000, and FCFE is expected to grow at a constant rate of 6.5%. If the company's weighted average cost of capital is 11.5%, what is the firm's total corporate value?

Problem 2 - Gupta Corporation is undergoing a restructuring, and its free cash flows are expected to vary considerably during the next few years. However, the FCF is expected to be P65.00 million in Year 5, and the FCF growth rate is expected to be a constant 6.5% beyond that point. The weighted average cost of capital is 12.0%. What is the terminal (or continuing) value (in millions) at t = 5?

Problem 3 - You must estimate the intrinsic value of Noe Technologies' stock. The end-of-year free cash flow (FCF1) is expected to be P27.50 million, and it is expected to grow at a constant rate of 7.0% a year thereafter. The company's WACC is 10.0%, it has P125.0 million of long-term debt plus preferred stock outstanding, and there are 15.0 million shares of common stock outstanding. What is the value of equity?

Problem 4 - Nachman Industries just paid a dividend (FCFE) of D0 = P1.32. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 9.00%. Assuming that the company has 30,000 shares, what is the best estimate of the company's value?