What was the company free cash flow for the year

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Question 1 - Venice Surf Co. expects to generate free cash flows (in $ millions) over the next three years of $519, $605, and $786. In addition, the terminal value of all free cash flows expected to be generated after Year 3 is $36,338. The company's non-operating assets equal $380 and its non-operating liabilities equal $3,938. There are 320 million shares outstanding. Estimate the value of each share of common stock using the free cash flow data provided, and assuming a discount rate of 7%.

Question 2 - Everglade Enterprises reported the following financial statement data. What was the company free cash flow for the year?

 

Current year

Prior year

Operating assets

$8,406

$7,536

Operating liabilities

$5,223

$4,502

Net cash flow from operations

$1,931

$1,820

Net operating profit after tax (NOPAT)

$1,454

$1,326

Question 3 - You have estimated that the present value of all future free cash flows of Venice Surf Co. to be $363 million. The company has non-operating assets of $11 million and non-operating liabilities of $72 million and there are 9 million shares of common stock outstanding. Estimate the value of each share using the free cash flow valuation date provided.

Reference no: EM133064417

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