You have been asked to calculate the price of a firm using free cash flow evaluation. Last year XYX Company has Free Cash Flow of $12 million. You expect the cash flows to grow at 10% for the next two years, then at 9% for the following two years and 6% thereafter. The WACC (required rate of return is 8.5% and the firms tax rate is 40%. Use Excel to solve the following.

1. What is the value of the firm?

2. If the market value of the debt is $350 million and the number of share outstanding is 10 million, what is the price per share of the firm?

Increasing annual dividend-decreasing the growth rate : Company A is planning on increasing its annual dividend by 15% a year for the next 4 years and then decreasing the growth rate to 3.5% per year afterwards. The company just paid its annual dividend in the amount of $0.2 per share. Suppose the require.. |

Find value of k that makes probability density function : Find the value of k that makes this function a probability density function. Find P(Y1 ≥ 3Y2). That is, find the probability that the cleaning device reduces the amount of pollutant by one-third or more. |

Compute the coefficients of variation : The spread in the annual prices of stocks selling for under $10 and the spread in prices of those selling for over $60 are to be compared. The mean price of the stocks selling for under $10 is $7.67 and the standard deviation $1.48. Compute the coeff.. |

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What is the price per share of the firm : You have been asked to calculate the price of a firm using free cash flow evaluation. Last year XYX Company has Free Cash Flow of $12 million. You expect the cash flows to grow at 10% for the next two years, then at 9% for the following two years and.. |

Adc channels on a pic24 microcontroller : What's the number of ADC channels on a PIC24 Microcontroller |

What would capital gains and dividend yield be for year : You have been asked to value a stock that will not pay a dividend until three years from now. At that time you estimate the dividend will be $1.40. You estimate that it will grow by 10% for the two following years and at 5% thereafter. What would the.. |

Speaker load is connected at the amplifier outputs : An amplifier has an open-circuit gain of-60, an input resistance of 8 k Ω, and an output resistance of 2 k Ω. A microphone transducer source is connected to the amplifier Input and has a source output resistance of 2 k Ω, and a speaker load is connec.. |

What is your margin loan and initial margin : You purchase 300 shares of security B-Flat on margin at a price of $50. Your broker requires a deposit $9,000. The margin call rate is 5%. what is your margin loan? What is the initial margin? If the maintenance margin is 30%, at what price will you .. |

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## Exchange acts as the counterparty for all transactionsFutures contracts have less default risk because the exchange acts as the counterparty for all transactions. Forward contracts trade on an organized exchange and are marked to market daily. Companies should always try to reduce risk whenever they can.. |

## What do you forecast as the market price of the stockAs an investor, what do you anticipate will be the outcome for Target Corporation by the end of the current fiscal year? Do you forecast improvement or loss? What do you forecast as the market price of the stock? |

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