User Account

All Pages

What is the expected FCFF

Assignment Help Financial Accounting
Reference no: EM132902872

Question - In 2020, Zip had earnings before interest and taxes of $6,200 million and had an effective tax rate of 35%. The price per share is $12 while the estimated market value of debt is $12,200 million. We assume that the firm will maintain a long term growth rate of 4%, and that reinvestment rate is 30% (useful for FCFF). The WACC is 6%. There are 200 million outstanding shares.

a) What is the expected EBIT for 2021? (in millions)

b) What is the expected FCFF for 2021? (in millions)

c) What is the value of the firm?

Reference no: EM132902872

Questions Cloud

Evaluate and choose health care insurance options : Describe one consideration you should take into account when looking into the option of private health care insurance. Evaluate and choose health care insurance
Describe the effect of chronic alcohol consumption : Describe the effect of chronic alcohol consumption on liver function and explain its consequence on the distribution of water between the interstitial
What was the amount of gain that mcdonald waste management : Based on the information provided, what was the amount of the Gain or Loss that McDonald's Waste Management recognized on the sale of this asset?
Service oriented architecture : Do research on service oriented architecture (SOA) and find three different images/diagram that represent its functions and features.
What is the expected FCFF : In 2020, Zip had earnings before interest and taxes of $6,200 million and had an effective tax rate of 35%. What is the expected FCFF
Name two different accounting methods : Name two different accounting methods that might be used in the valuation of the expenditure. Discuss the advantages and disadvantages of both methods.
Explain impact of globalization on your own life : Explain the impact of globalization on your own life and your country (provide specific examples).
What the cra is responsible for : Under the CPP act and the EI act, the CRA is responsible for? Keeping records of each individual's Canada Pension Plan contributions and pensionable earnings.
Record amortization expense for the year ended Dec : Jan 1 2022 Paint Palette paid $122,000 to obtain a patent. Record amortization expense for the year ended Dec. 31, 2021

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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