What is the enterprise value for firm

Assignment Help Finance Basics
Reference no: EM131862058

A firm has a debt valued at $3 million, and $0.5 million in excess cash. The equity holders will receive dividends of $0.1 million next year, and this amount will grow by 4% in perpetuity. If the discount rate for the equity is 20%, what is the enterprise value for this firm?

Reference no: EM131862058

Questions Cloud

Currency denomination decision by the sports exports company : The Sports Exports Company continues to focus on producing footballs in Australia and exporting them to the United Kingdom. The exports
Access the databases of articles : Criminal justice research benefits society, the practitioner, and you as a student in many ways.
The NPV of test-marketing before going to market : Calculate the NPV of going directly to market and the NPV of test-marketing before going to market.
Which administrative agency governs regulatory compliance : Eric is an Assistant Vice President at marine paint manufacturing plant. One day, he accidentally discovers an email from his boss, the Vice President.
What is the enterprise value for firm : If the discount rate for the equity is 20%, what is the enterprise value for this firm?
What is the financial break-even point point for project : Shane's Toys, Inc., just purchased a $528,000 machine to produce toy cars. What is the financial break-even point point for the project?
Appreciate or depreciate against the australian dollar : a. Given Jim's expectations, forecast whether the pound will appreciate or depreciate against the Australian dollar over time.
Create a new journal entry in which the first line is day : For each day that you volunteer, create a New Journal entry in which the First Line is the Day, Date, and Time Period that you worked that Day.
Research a program aimed to assist or care : A comparison of the demographics and types of prisoners including the differences between state and federal prisoners

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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