What is the net-present value of investment opportunity

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Q1: ABC Corp. expects to have EBITDA of $ 400 million. ABC also has 150 shares of common stock outstanding and net debt (net debt = debt - cash) of $ 300. The average EV/EBITDA ratio of similar companies is 10. Given this information what do you estimate is a fair price for a share of ABC common stock? Round your final answer to two decimals.

Q2: Given the following end of year cash flows (CF), what is the net-present value (NPV) of this investment opportunity? Assume that the project's cost of capital is 10%. Round your final answer to two decimals.

Timeline 0 1 2 3 4

CF -1000 500 500 500 700

Q3: Given the following end of year cash flows (CF), what is the Internal Rate of Return (IRR) of this investment opportunity. Enter your answer as a percent; do not include the % sign. Round your final answer to two decimals.

Timeline 0 1 2 3 4

CF -1000 500 500 500 700

Q4: Given the following end of year cash flows what is the IRR of this project? Also assume that following year four the cash flows will grow by 4% in perpetuity. Enter your answer as a percent without the "%"; round your final answer to two decimals.

Timeline 0 1 2 3 4

CF -5,000 300 400 500 600

Reference no: EM132798239

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