Depreciation and capital expenditures

Assignment Help Finance Basics
Reference no: EM131402136

Victoria Enterprises expects earnings before interest and taxes (EBIT ) next year of $1.2 million. Its depreciation and capital expenditures will both be $313,000 , and it expects its capital expenditures to always equal its depreciation. Its working capital will increase by $53,000over the next year. Its tax rate is 35%. If its WACC is 8% and its FCFs are expected to increase at 6% per year inperpetuity, what is its enterprisevalue?

Reference no: EM131402136

Questions Cloud

Identify those risk factors associated with the young family : A nurse conducts an assessment on a young family with a new baby boy. The husband has recently been promoted to a higher paying position but is not sure if he will be making enough money to move a new apartment in a safer neighborhood. Based on th..
What would be the likely impact of this law : Suppose an air-quality law is passed that requires 3.75 percent of all the cars sold to emit zero pollution.
Estimate of csh stock price : CSH has EBITDA of $5 million. You feel that an appropriate EV/EBITDA ratio for CSH is 8. CSH has $9 million in debt, $3 million in cash, and 775,000 shares outstanding. What is your estimate of CSH's stock price?
Identify the fallacies of relevance : Identify the fallacies of relevance committed by the following arguments, giving a brief explanation for your answer. If no fallacy is committed, write "no fallacy."
Depreciation and capital expenditures : Victoria Enterprises expects earnings before interest and taxes (EBIT ) next year of $1.2 million. Its depreciation and capital expenditures will both be $313,000 , and it expects its capital expenditures to always equal its depreciation. Its work..
What is its free cashflow : This year, FCF Inc. has earnings before interest and taxes of $9.1 million, depreciation expenses of $0.6 million, capital expenditures of $1.5million, and has increased its net working capital by $575,000. If its tax rate is 30% , what is its fre..
How does a coder find out if the third party payer requires : The textbook says that the common anesthesia time units are 15 minutes, but that some carriers use 30 minutes. Not mentioned in the book is the fact that some carriers require the actual number of minutes rather than increments. Why do you think t..
Estimate pretty good golfers score based on assumption : Use a simulation to estimate a pretty good golfer's score based on these assumptions:- The tee shot hits the fairway 70% of the time.
Corporation sells on credit terms : Size of Accounts Receivable [LO1] The Arizona Bay Corporation sells on credit terms of net 30. Its accounts are, on average, four days past due. If annual credit sales are $9.75 million, what is the company's balance sheet amount in accounts recei..

Reviews

Write a Review

 

Finance Basics Questions & Answers

  The whole food nutrition center uses grains to blend a

the whole food nutrition center uses grains to blend a natural cereal that it sells by the pound. the cereal has to

  How many years before you can expect to pay cash

Assuming implied forward rates are the best estimates of future one-year rates, how many years before you can expect to pay cash for a used car if you invest in successive one-year bonds?

  Explain the capital asset pricing model

Explain the Capital Asset Pricing Model in terms of a CFO managing his/her investor relations. Prepare a Risk Analysis for Chevron Corp

  Complete the amortization schedule for orbit corp

Complete the amortization schedule for Orbit Corp

  The price-earnings ratio of general motors automobile

the price-earnings ratio of general motors automobile builder was 8 and the price-earnings ratio of microsoft computer

  What is the relationship between ford motor company

What is the relationship between Ford Motor Company and General Motors and their respective employees and investors?

  What are some of the pitfalls of an improperly conducted

Why is a needs assessment so important? What are some of the pitfalls of an improperly conducted needs assessment, or of not conducting one at all? What IS learning? How does one know that learning has occurred? Can we unlearn? How?

  Expected return on loan

Discuss what is the expected return on this loan without taking future values into consideration? What is the expected return on this loan using future values? That is, the fees and interest income are evaluated at the end of the year when the loan..

  What are extraneous and confounding variables

What are extraneous and confounding variables? Which type of variable is most dangerous to the statistical conclusion validity and the internal validity of experimental research, and why?

  A study at the university of colorado at boulder shows that

a study at the university of colorado at boulder shows that running increases the percent resting metabolic rate rmr in

  What is the irr for aol associated with each bid

a. What is the IRR for AOL associated with eachbid? b. If the cost of capital for each investment is 16%,what is the net present value (NPV)of each bid?

  Cash flow provided by the bond

A U.S. savings bond costs $660 now, and will pay its face value of $1000 at maturity in 10 years. The single payment at maturity is the only cash flow provided by the bond.

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