Reference no: EM131350847
Corporate valuation
Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly does not pay any dividends, and it has no plans to pay dividends in the near future. A major pension fund is interested in purchasing Brandtly's stock. The pension fund manager has estimated Brandtly's free cash flows for the next 4 years as follows: $3 million, $5 million, $12 million, and $16 million. After the fourth year, free cash flow is projected to grow at a constant 7%. Brandtly's WACC is 10%, the market value of its debt and preferred stock totals $54 million, and it has 11 million shares of common stock outstanding.
Write out your answers completely. For example, 13 million should be entered as 13,000,000.
What is the present value of the free cash flows projected during the next 4 years? Round your answer to the nearest cent. Do not round your intermediate calculations.
$
What is the firm's horizon, or continuing, value? Round your answer to the nearest cent.
$
What is the firm's total value today? Round your answer to the nearest cent. Do not round your intermediate calculations.
$
What is an estimate of Brandtly's price per share? Round your answer to the nearest cent. Do not round your intermediate calculations.
$
|
What is the depth of water behind the bore
: A tidal bore is moving at 5 m/s into a stagnant basin of depth 1 m. What is the depth of water behind the bore?
|
|
What is its cost of common equity
: The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 6% per year. Callahan's common stock currently sells for $23.00 per share; its last dividend was $1.50; and it will pay a $1.59 dividend at the ..
|
|
Illustration of the feedback loo
: How does the endocrine system work closely with other systems? Research the feed back loop and how many systems are intertwind. Write a one page, general formatted paper and include an illustration of the feedback loop between at least two system..
|
|
Topic of unemployment in the us
: Write a minimum of a five-page essay, using proper APA format, on the topic of unemployment in the U.S. Use a minimum of three scholarly sources. You have the freedom to take any aspect of unemployment that you desire to research.
|
|
What is the firm horizon or continuing-value
: Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. What is the present value of the free cash flows projected during the next 4 years? What is the firm's horizon, or continuing, value?
|
|
Scenario to acme management that might convince
: Assume that Acme's chosen vendor will grow as forecast. Offer a scenario to Acme management that might convince them that they should rethink their decision to rely on a single vendor. What do you recommend Acme do to minimize the risk(s) that you..
|
|
What do you expect from the system
: User stories and acceptance criteria (Identify different types of users and write sample user stories for key functions. Each team member should develop at least 6 user stories and related acceptance criteria. Team members has to decide which user..
|
|
Market value of all final goods and services
: GDP is defined as the market value of all final goods and services produced within a country in a given period of time. In spite of this definition, some production is left out of GDP. Explain why some final goods and services are not included.
|
|
Money in stock with an expected return
: You have ?$ 69,000. You put 16?% of your money in a stock with an expected return of 11?%, ?$36,000 in a stock with an expected return of 13?%, and the rest in a stock with an expected return of 18?%. What is the expected return of your? portfolio?
|