What is total corporate value

Assignment Help Financial Accounting

Reference no: EM13139434

The first acquisition target is a privately held company in a mature industry owned by two brothers, each with 5 million shares of stock. The company currently has free cash flow of $20 million. Its WACC is 11%, and the FCF is expected to grow at a constant rate of 5%. The company owns marketable securities of $100 million. It is financed with $200 million of debt, $50 million of preferred stock, and $210 million of book equity

1) What is the value of operations?

2) What is the total corporate value?

3) What is the intrinsic value of equity?

4) What is the intrinsic stock price per share?

5) What is the intrinsic MVA (MVA=total corporate value-total book value of capital supplied by investors?

Reference no: EM13139434

Questions Cloud

Find the probability that fewer adults are satisfied : Find the probability that fewer than 7 are satisfied. c) Find the probability that 8 or more are satisfied. d) Find the probability that between 4 and 7 are satisfied with the airline.

Long-standing and wide persecution of jews : Develop a long and detailed list of reasons why there has been long-standing and wide persecution of Jews.

Explain circuit to be used in a process control system : Design an alarm circuit to be used in a process control system. Temperature (T), pressure (P), flow (F), and level (L) of a fluid are each monitored by separate sensor circuits that produce a high logic output signal when the following indicated p..

What is the cost benefit analysis of monogomy : What is the cost benefit analysis of monogomy? What are some of the costs to fitness of monogomy? Some of the benefits?

What is total corporate value : It is financed with $200 million of debt, $50 million of preferred stock, and $210 million of book equity. What is the value of operations? What is the total corporate value?

What does it mean to say that an allele is fixed : What does it mean to say that an allele is "fixed"? a. Its base sequence is set--no mutation is possible. b. Its frequency is 1.0. c. It is recessive. d. It is dominant.

Jesus and levitical priesthood compared, : What does the priesthood of Jesus have in common with the priesthood of Levi? In what ways are they different? Jesus' priesthood has elements that were shared with the priests from the line of Levi as expounded in the Old Testament, but there were ..

What would be percentage appreciation on the stock bought : What would be percentage appreciation on the stock bought by the venture investors versus the investment appreciation for the founders?

Find probability enough seats will be available in airline : An airline has a policy of booking as many as 17 persons on an airplane that can seat only 16. Find the probability that if the airline books 17 people, not enough seats will be available.

User Account

All Pages