Assume the following free cash flows for zhang inc for 2011

Reference no: EM13813193

1. Assume the following free cash flows for Zhang Inc. for 2011 and forecasted FCFF for 2012 onward (in millions):

	Current	Forecast Horizon	Terminal Year
($millions)	2011	2012	2013	2014	2015
Free cash flows to the firm (FCFF)	$5,138	$5,396	$5,794	$6,624	$7,290	$7,578

The DCF value of the firm using the FCFF information above, a discount rate of 8%, and an expected terminal growth rate of 3.5%, is:

$144,360 million

$135,190 million

$ 37,820 million

$ 25,738 million

None of the above

Reference no: EM13813193

Questions Cloud

Unclear evaluation criteria defined within them : What percentage of BPO contracts do you think have weak or unclear evaluation criteria defined within them? What steps will you take to ensure that your performance measures are not weak?

Write a research paper on csr of l-brand : Write a Research paper On CSR of L-Brand.

What do you know about monetary policy : What do you know about monetary policy and What else does your chapter say about expansionary and restrictive monetary policy?

Type of international strategy : 1. High pressure for local adaptation combined with high pressure for lower costs would suggest what type of international strategy?

Assume the following free cash flows for zhang inc for 2011 : 1. Assume the following free cash flows for Zhang Inc. for 2011 and forecasted FCFF for 2012 onward (in mllions): Current Forecast Horizon Terminal Year ($millions) 2011 2012 2013 2014 2015 Free cash flows to the firm (FCFF) $5,138 $5,396 $5,794 $..

Write a paper about food economy in the usa : Write a paper about Food economy in the USA.

Who would be involved in idea-generating sessions : Identify some core values of this organization as best as you can. What do they believe in (beyond organizational success or profitability)?

Develop a health organization disaster planning : Develop a Health Organization Disaster Planning and Response Strategy that links federal, state, and local agency authorities and reflects the potential ethical decision-making that a health care leader may be confronted with.

What are the four supply factors of economic growth : What are the four supply factors of economic growth? What is the demand factor? What is the efficiency factor?

User Account

All Pages