What was corporation value of operations

Assignment Help Financial Management
Reference no: EM131990149

ABC Corporation’s free cash flows were projected to be 32,000 in 2017, 35,000 in 2018, 36,000 in 2019 and 38,000 in 2020. After 2020 ABC’s free cash flows were expected to grow at a steady 5% annual rate. ABC’s weighted average cost of capital was 9%. As of December 31, 2016, what was ABC Corporation’s value of operations?

Reference no: EM131990149

Questions Cloud

High insurance deductible usually means : On a depreciating asset most likely the insurance premium would be higher. High insurance deductible usually means. Evaluating insurance coverage needs involves
How many days does it take on aveage to collect cash : How many days does it take on aveage for Fotoshop to collect cash from the customers who buon on credit given the following data?
The price of the bond is greater than the par value : If the yield to maturity is greater than the coupon rate, the price of the bond is greater than the par value.
What is the limit of the net present worth : A manufacturing company is considering investing in a new cutting machine that will cost $120,000 and has an annual maintenance cost of $12,000.
What was corporation value of operations : ABC’s weighted average cost of capital was 9%. As of December 31, 2016, what was ABC Corporation’s value of operations?
Calculating the risks in making investment decisions : Read the case study entitled BG Group: Calculating the Risks in Making Investment Decisions.
What is the implied volatility of the currency exchange rate : what is the implied volatility of the currency exchange rate?
Prepare the journal entry to record the note : Prepare the journal entry to record the note on November 1. (If no entry is required for a transaction/event, select "No journal entry required" in the first).
Considering purchasing bond on the secondary market : You are considering purchasing a bond on the secondary market that pays annual coupons, has 30 years to maturity,

Reviews

Write a Review

Financial Management Questions & Answers

  According to vandalays capital budgeting plan

According to Vandalay’s capital budgeting plan, the maximum yearly amount it can afford to pay on a loan to finance the new factory upgrade is $90,000. The firm finds out that the lowest interest rate that it can obtain from the local banks is 6% per..

  Statements is correct concerning ratio analysis

Investors paid a total of $200,000 to acquire common stock in a firm. What is the book value of that firm? Which one of the following statements is correct concerning ratio analysis?

  Common stock to raise funds to finance future growth

Global gum company (GGC) has decided to issue $150 million in common stock to raise funds to finance future growth. GGC's stock currently sells for $25 per share. How many shares does GGC plan to issue? If flotation costs are 8 percent, how much of t..

  What is saydas realized and recognized gain or loss of sale

Is there any exemption or postponement of the gain or loss available to her? Answer the question completely and by showing your calculations.

  Forward rates on zero coupon treasury bonds for years

On March 11, 20XX, the existing or current (spot) 1-, 2-, 3-, and 4-year zero coupon Treasury security rates were as follows: 1R1 = 0.35%, 1R2 = 0.95%, 1R3 = 1.35%, 1R4 = 1.50% Using the unbiased expectations theory, calculate the 1-year forward rate..

  Project is expected to have annual revenues

Suppose a project is expected to have annual revenues of 45,000$ for the next 10 years, beginning next year.

  Economically preferable to use higher octane gasoline

Casey must determine ifit is economically preferable to use higher octane gasoline in his new car. The higher octane has a cost of higher than that of the lo octane gas. $0.20/gallon year.  His car has an initial cost of $22,000 and an assumed salvag..

  How long does it take to double your money

Calculating the Number of Periods At 7percent interest, how long does it take to double your money?

  Cost-to-charge ratio

In the above data set, assume that the hospital’s cost-to-charge ratio is 0.75 for routine services and 0.70 for Total Ancillary services. Using this information, what would the average cost of MSDRG 505 be?

  Price variance-quantity variance relating to direct material

Compute both the price variance and quantity variance relating to direct materials used in the manufacture of pillowcases in May

  What is the present value of this liability

Imprudential, Inc., has an unfunded pension liability of $581 million that must be paid in 20 years. To assess the value of the firm’s stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 7.4..

  Calculate the portfolio return for a business

If these two assets are in the same portfolio, would that be better or worse for the portfolio return? Can you tell by a quick examination, and how?

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd