User Account

All Pages

What is the value of forta operations

Assignment Help Accounting Basics
Reference no: EM133180191

Question - Forta Manufacturing just reported Free Cash Flow (FCF) of $60 million, which is expected to grow at 4% indefinitely. The company has 20,000,000 shares of common stock outstanding, $275 million in debt, and $35 million in preferred stock outstanding. Forta has a WACC of 12% and excess cash of $25 million. 

Required -

What is the value of Forta's operations?

What is the intrinsic value (per share) of Forta's common stock?

Suppose Forta uses its excess cash to repurchase shares. How many shares will be repurchased?

What is the intrinsic value (per share) of Forta's common stock after the share repurchase?

Reference no: EM133180191

Questions Cloud

Prepare the journal entries to record the development costs : Santos expects a useful life of five years for software and total revenues of $9,000,000 during that time. Prepare journal entries to record development costs
Compute wilma tax liability and tax savings : Wilma qualifies for head-of-household filing status. Compute Wilma's tax liability and tax savings from the alternative tax on net capital gain
State whether a provision should be recognised : Question - Warona Co gives warranties at the time of sale to purchasers of its products. State whether a provision should be recognised
What is the price of the option today : You are in discussions to purchase an option on an office building with a strike price of $91 million. What is the price of the option today
What is the value of forta operations : Forta Manufacturing just reported Free Cash Flow (FCF) of $60 million, which is expected to grow at 4% indefinitely. What is the value of Forta operations
Set up the time frames and budgeting targets : You are a supervisor at a medium size business and your manager has supplied you a mid-year financial report. Set up the time frames and budgeting targets
What is the project pv : A project produces a cash flow of $432 in year 1. $137 in year 2, and $797 in year 3. If the cost of capital is 15%, what is the project's PV
How much income is taxed in each state : Shazam, Inc. has its corporate headquarters and all plants and warehouses located in the state of Louisiana. How much income is taxed in each state
Give the journal entries ss recorded : On January 1, 20X1, SS sold bonds with a par value of $600,000 at 97. Give the journal entries SS recorded during 20X1 with regard to its bonds

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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