What is the current total value

Assignment Help Financial Management

Reference no: EM13882814

Beach & Company reported net income of $40 million for last year. Depreciation expense totaled $18 million and capital expenditures came to $8 million. Free cash flow is expected to grow at a rate of 5% for the foreseeable future. Beach faces a 40% tax rate and has a 0.40 debt to equity ratio with $200 million (market value) in debt outstanding. Beach's equity beta is 1.25, the risk-free rate is currently 4.5% and the market risk premium is estimated to be 8.0%. What is the current total value of Beach & Company ASSETS (in millions)?

a. $655.90

b. $730.18

c. $840.95

d. $919.46

e. $1,025.95

Reference no: EM13882814

Questions Cloud

What advantages would motivate management to conduct : What advantages would motivate management to conduct fraud related to source of capital processes?

Father-in-law who wholeheartedly supports the free trade : This reading finishes the book Nobodies. Author John Bowe finishes his examination of Saipan and the Northern Mariana Islands with an extended look at some aspects of the island realities; then in a concluding chapter he meditates on on what it all ..

Discuss why loan originators might consider selling a loan : Discuss why loan originators might consider selling a loan. Why might an institution consider buying loan participation? Why do large institutions participate in loan syndications? What are the advantages and disadvantages of serving as the lead bank..

Explain how cash resulting from source of capital processes : Explain how cash resulting from source of capital processes may be handled differently than in revenue processes.

What is the current total value : Beach & Company reported net income of $40 million for last year. Depreciation expense totaled $18 million and capital expenditures came to $8 million. Free cash flow is expected to grow at a rate of 5% for the foreseeable future. What is the current..

Describe the nature of the authorization of source : Describe the nature of the authorization of source of capital processes.

Overhead is applied on the basis of machine hours : Overhead is applied on the basis of machine hours. It takes 3 machine hours to produce a large doll house and 2 machine hours to produce a small doll house. EDHC produces 2,000 large doll houses and 10,000 small doll houses in a year. Total manufactu..

Average salary for ucr graduates : Tuition costs $13,500 for UC Riverside Students. Suppose college lasts four years. Average salary for UCR graduates is $48,700. Average salary of someone who does not finish college is $37,400. Suppose everyone retires at age 65 and everyone leaves h..

Prepare a project on new product development : Prepare a project on New Product Development and in the report following points should be included :Introduction,Purpose,Background,Scope,Methodology,Assumptions,Limitations,Framework,New Product,Development Practices,Key Success Factors in NPD Proce..

User Account

All Pages