What is the present value of its terminal value

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1. A firm has free cash flows of $1,000, $2,000, and $3,000 at the end of years 1, 2, and 3, respectively. Assume a discount rate of 10%. If the firm has a present value of $8572.50, what is its terminal value? What is the present value of its terminal value?

2. All data in this problem are for the Year 20xx. Net Income = $450 Interest received from bank accounts = $10 Interest paid on debt = $50 Tax rate = 25% Based on the above information, what is the NOPAT in Year 20xx?

3. A firm’s enterprise value is estimated to be $1600. It has surplus cash and marketable securities of $200. Its total debt is $500. The firm has 50 shares outstanding. What is the estimate of its share price?

Reference no: EM131869794

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