Free cash flow valuation model

Assignment Help Financial Management
Reference no: EM132062701

Calculate present value of $1,000 bond with 9% coupon and quarterly interest payments. The bond has 15 years to maturity and 10.56% yield to maturity.

Free Cash Flow Valuation Model for Equity Pym Tech has been growing continuously over several years. There free cash flows forecast in given below. Year (t) Free Cash Flows? (FCFt)

2019 800,000

2020 950,000

2021 1,250,000

2022 2,150,000

2023 3,120,000

After 2023 the growth rate of FCF stabilizes to 9%. The weighted average cost of capital is 11%. Market value of all debt for Pym Tech is 32,000,000. Market value of preference shares is 5,000,000. Pym Tech has 1,000,000 shares outstanding. The current price of Pym Tech shares is $61.

Free Cash Flows in 2024

Value of firm in 2023

Value of firm today

Value of Equity today

Value of Per share (of common stock) today

Is the share? over/under valued

Recommendation for the stock

Reference no: EM132062701

Questions Cloud

Retained earnings represents : Retained earnings represents. The over-the-counter market differs from the New York Stock Exchange in that.
Considering investment portfolio containing two stocks : Peter Parker is considering an investment portfolio containing 2 stocks: Wakanda Forever and Wayne Enterprises
Explain the ethical consequences : Explain the ethical consequences if you selected the other forms of organization.
True about off-balance finance : Which of the following is (or are) not true about off-balance finance?
Free cash flow valuation model : Free Cash Flow Valuation Model for Equity Pym Tech has been growing continuously over several years.
Net present value of project : What is the net present value of a project that has upfront costs of $5 million and pays end of the year cash flows of $1 million in one year,
What is the difference between goods and services : What are the three categories of torts? What is the difference between goods and services? What is the perfect tender rule?
What are the free cash flows generated from the project : What are the Free Cash Flows (FCF) generated from the project? What is the Weighted Average Cost of Capital (WACC)?
As more capital is raised, marginal cost of capital rises : As more capital is raised, the marginal cost of capital rises. How can too much capital be damaging to the financial state of the organization?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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