What is the horizon value

Assignment Help Financial Management
Reference no: EM131599890

Midwest Industries is undergoing a restructuring, and its free cash flows are expected to vary considerably during the next few years. However, FCF is expected to be $66 million in Year 5, and the FCF growth rate is expected to be a constant 6.5% beyond that point. Their weighted average cost of capital is 12%. What is the horizon (or continuing) value in millions at t = 5?

Rounded to 2 decimal places, with no special characters.

Reference no: EM131599890

Questions Cloud

What are float and libor : What is float? Why is it important? the corporation's recorded amount and the amount credited to the corporation by the bank. What is LIBOR?
What is their total expected return : Retractable Technologies just paid a dividend of D_0 = $1.70 and sells for $40 per share. what is their total expected return?
Based on corporate valuation model-what is price per share : Based on the corporate valuation model, SG Telecom's total corporate value is $750 million. what is its price per share?
What is the expected return on the corporation stock : What is the CAPM required return on the corporation’s stock? What is the expected return on the corporation’s stock?
What is the horizon value : Midwest Industries is undergoing a restructuring, and its free cash flows are expected to vary considerably during the next few years.
Estimated intrinsic value per share of common stock : what is the estimated intrinsic value per share of their common stock?
What is the company current stock price : Kelso Corporation just paid a dividend of D_0 = $0.90 per share, What is the company's current stock price?
The quantity where operating cash flow equals zero : The quantity where operating cash flow equals zero is _____ units. The quantity where Net Income would be zero is _____ units.
What is the profit on new sales : Price Corp. is considering selling to a group of new customers and creating new annual sales of $270,000. What is the profit on new sales?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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