Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Hastings Corporation is interested in acquiring Vandell Corporation. Vandell has 1.5 million shares outstanding and a target capital structure consisting of 30% debt; its beta is 1.25 (given its target capital structure). Vandell has $9.50 million in debt that trades at par and pays a 7.1% interest rate. Vandell's free cash flow (FCF0) is $1 million per year and is expected to grow at a constant rate of 6% a year. Vandell pays a 25% combined federal-plus-state tax rate, the same rate paid by Hastings. The risk-free rate of interest is 6%, and the market risk premium is 8%. Hasting's first step is to estimate the current intrinsic value of Vandell.
a. What is Vandell's cost of equity? Do not round intermediate calculations. Round your answer to two decimal places.
b. What is its weighted average cost of capital? Do not round intermediate calculations. Round your answer to two decimal places.
c. What is Vandell's intrinsic value of operations? (Hint: Use the free cash flow, corporate valuation model.) Enter your answer in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Do not round intermediate calculations. Round your answer to two decimal places.
d. Based on this analysis, what is the minimum stock price that Vandell's shareholders should accept? Do not round intermediate calculations. Round your answer to the nearest cent.
What should be done to maintain optimum stock levels and why is it important to keep accurate and up-to-date records of stock?
In this report, you are to- provide an appropriate definition of a GVT which identifies the unique features of a GVT and explain why technology plays such an important role in GVTs
Propose the main ways in which health status affects workers' compensation overall. Provide at least one (1) example the model in use to support your response.
describe international business practices and discuss how they are being shaped by economic theories, financial, socio-cultural and political forces; with particular emphasis on the business practices of UK's major trading partners;
Identify at least 2 ways the law has been used to respond to health-harming social needs in health communities. Do you feel the response was effective? What changes would you recommend as a healthcare regulator? Justify your rationale.
Explain and Identify the needs of stakeholders for each opportunity and build a business plan for the most promising opportunity
You will want to include some of the Joint Commission's requirements pertaining to what should be included in the medical record
After all, if Harley Davidson can build a brand that makes 55 year old orthodontists feel like wild weekend bikers - the road's wide open.
Illustrate what do organizations consider when trying to choose inter organizational strategies in order to minimize transaction costs and bureaucratic costs?
Choose two of the following organization structures and describe the advantages and disadvantages of the ones you select.
Why dose The Business Alliance for Local Living Economies, (BALLE) support green causes and work-family accommodations while the Chamber of Commerce
The store manager notices that chicken breast sales decrease by 10 percent.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd