Horizon value current and projected free cash flows

Assignment Help Financial Management
Reference no: EM131317112

Horizon Value Current and projected free cash flows for Radell Global Operations are shown below. Actual 2013 2014 Projected 2015 2016 Free cash flow $619.52 $680.20 $720.25 $763.47 (millions of dollars) Growth is expected to be constant after 2015, and the weighted average cost of capital is 10.05%. What is the horizon (continuing) value at 2016 if growth from 2015 remains constant? Round your answer to the nearest dollar. Round intermediate calculations to two decimal places. $ 18092.00 is incorrect

Reference no: EM131317112

Questions Cloud

Average real risk-free rate and average real risk premium : You’ve observed the following returns on Barnett Corporation’s stock over the past five years: –28.5 percent, 16 percent, 35 percent, 3.5 percent, and 22.5 percent. The average inflation rate over this period was 3.35 percent and the average T-bill r..
Analysts expect the company to grow at rate : Ranyard's beta is 1.13, and the last dividend per share paid was $3.85. The market risk premium is estimated to be 6.37%, and the real rate of interest is 2.01%. The liquidity risk premium is 0.7%. Analysts expect the company to grow at a rate of 3.2..
What is its coefficient of variation : Stock X has an expected return of 0.11. It has a beta estimated at 0.9, a risk-free rate of 0.03 and a risk premium of 5.9. Its variance of returns is 0.0172. All returns here are expresed as decimals, not percentages. What is its coefficient of vari..
What is the required return for dentrix corporation : What is the required return for Dentrix Corporation? The risk-free rate is 3.2%, the risk premium is 8.1, the expected rate of inflation is 3.4% and the company can currently issue bonds at a YTM of 4.9%. The company's beta is estimated to be 1.14.
Horizon value current and projected free cash flows : Horizon Value Current and projected free cash flows for Radell Global Operations are shown below. Actual 2013 2014 Projected 2015 2016 Free cash flow $619.52 $680.20 $720.25 $763.47 (millions of dollars) Growth is expected to be constant after 2015, ..
How much is used to repay the loan : This morning, you borrowed $450,000 to buy a house. The APR for your mortgage is 3.6%. The loan is to be repaid in equal monthly payments over 30 years. The first payment is due one month from today. How much is your monthly mortgage payment? How muc..
Good return on equity or poor return on equity : The company also has a bank line of credit that allows the company to borrow any shortfall it might have in cash. Interest on the loan is 10%. Assume the loan remained constant throughout the year. Based on all of the above information, will this com..
Create the company income statement and balance sheet : In its closing financial statements for its first year in business, ABC Enterprises, had cash of $242, accounts receivable of $850, inventory of $820, net fixed assets of $3,408, Using the information provided and the ratios you calculated create the..
Compute stock average return and standard deviation : Consider the following annual returns of Estee Lauder and Lowe’s Companies: Compute each stock’s average return, standard deviation, and coefficient of variation.

Reviews

Write a Review

Financial Management Questions & Answers

  Annuity immediate with annual payments is calculated

A 20-year annuity immediate with annual payments is calculated at 6.2%. The first payment is 500 and increases at 4% annually. Find the present value of this annuity.

  Calculate the interest rate

The interest rate in the United States is 4% and the euro is trading at 1 euro per dollar. The euro is expected to depreciate to 1.1 euro per dollar. Calculate the interest rate in Germany.

  Fixed asset will be depreciated straight-line to zero

Keiper, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.67 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be wort..

  Balance sheet-what is the firms net working capital

The assets of Dallas & Associates consist entirely of current assets and net plant and equipment. The firm has total assets of $2.8 million and net plant and equipment equals $2.4 million. What is the company's total debt?  What is the balance of cur..

  What is the accounting break-even level for the project

You are considering investing in a company that cultivates abalone for sale to local restaurants. Use the following information: Sales price per abalone = $34.60 Variable costs per abalone = $5.70 Fixed costs per year = $371,000 Depreciation per year..

  What is the market price of the bond

A bond pays an annual coupon of $121 has a face value of $1,000 and has 6 years remaining until maturity. If the current market required rate of return on bonds of this type is 9% what is the market price of the bond? State your answer in dollars and..

  Financial distress different from agency benefit of leverage

What are agency costs, and how are agency costs of financial distress different from agency benefits of leverage? Explain their impact on calculating the value of a firm with financial distress.

  What is the projects discounted payback-npv-irr and mirr

T. Walcott Company(TWC) is considering a project that has the following cash flow and WACC data. What is the project’s discounted payback, NPV, IRR, and MIRR?

  Cash referencing using least example of assets-liabilities

Contrast sources and uses of cash referencing using at least two examples of assets and liabilities (four total). Provide examples of how cash is used or provided depending on whether it is categorized as an asset or liability.

  Discounted payback period approach

Bob suggested Brody consider using the “discounted payback period approach” and the “Profitability Index Model (PI)”. Bob asked Brody, what is you cost of capital? Brody said, I can raise half from stock (about a 4% cost) and the remaining half from ..

  Accumulated depreciation-funded depreciation

Based upon following information, how much debt financing (as a %) would be required to finance the replacement of fully depreciated Property, Plant, and equipment (P.P.&E.)?

  Graph the yield curve

Assume that current interest rates on government securities are as follows: - one- year rate, 5 percent; two- year rate, 6 percent; three- year rate, 6.5 percent; four- year rate, 7 percent.- Graph the yield curve.

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