Reference no: EM131322426
1. You are trying to value Zombie Games Inc,, a company that manufactures games for the major game systems. You have been provided the following information:
· The firm generated $ 30 million as operating profit (EBIT) in the most recent year and the corporate tax rate is 40%.
· The gross capital expenditures incurred in developing new games was $ 12 million in the most recent year and depreciation was$ 5 million.
· The non-cash working capital increased by $ 4 million during the course of the last year
· The cost of capital for the company is 10%
a. Assuming that the after-tax operating income, capital expenditures, depreciation and non-cash working capital all are expected to grow 15% a year for the next 3 years, estimate the free cash flows to the firm (FCFF) each year for the next three years.
b. After the year 3, the high growth period for the company ends and the after-tax operating income (e.g. NOPAT) will start to grow by 3% forever. You also anticipate that the company is going to re-invest 20% of its NOPAT each year. This investment includes both, capital investments and working capital investments. Estimate the terminal value of the firm and discount it to present day
c. If the firm has 100 million in debt, $20 million in liquid financial securities and 10 million shares outstanding, estimate the value per share today
d. Compute the EV/EBITDA measure and explain what it means. Note that the EV/EBITDA ratios for the major competitors of Zombie Games is 12.0
|
How human services professionals engage clients
: Write a 1,050- to 1,400-word paper that explains how Human Services professionals engage clients and the community in the helping process while using specific skills to influence client access to engagement of services
|
|
Write a critical analysis of what you have experienced
: Write a critical analysis of what you have experienced and observed in the group that you participated in. References to the concepts and theories discussed in our class should be a significant part of your analysis.
|
|
Some scientists in the physical sciences argue
: Some scientists in the physical sciences argue that hypothetical constructs are not scientific because they cannot be observed directly. Do you agree or disagree with this position? Why?
|
|
Write an equation representing the growth of the population
: Using derivatives, write an equation representing the growth of the population. Let k be the constant of proportionality.
|
|
Compute the ev-ebitda measure and explain what it means
: Compute the EV/EBITDA measure and explain what it means. Note that the EV/EBITDA ratios for the major competitors of Zombie Games is 12.0.
|
|
Mortgage-pass throughs
: (Mortgage-Pass Throughs) Referring to the same mortgage pass-through of the previous question, what is the total amount of the prepayments if the rate of prepayments increases to 200 PSA?
|
|
Identify memories of masculinity and femininity in family
: Identify memories of masculinity and femininity in your family, peers, authority figures, and role models from childhood through adolescence
|
|
Interest-only and mortgage-backed securities
: Suppose we construct principal-only (PO) and interest-only (IO) mortgage-backed securities (MBS) using the mortgage pass-through of the previous questions. Assume a prepayment multiplier of 100 PSA. What is the present value of the PO MBS if we use a..
|
|
Evaluate the companys culture and its compatibility
: Describe the change and the need for it?Evaluate the company's culture and its compatibility with change?If you were the team leader in this case, which of the four quadrants on the strategy-culture matrix would you use if your group decides to go ..
|