User Account

All Pages

What is the value of firm

Assignment Help Finance Basics
Reference no: EM131957009

Your firm's cash flow was $600,000 this year. An appropriate discount rate for your firm is 11 percent. You expect the firm to be able to grow cash flow by 4 percent each year (including 1.50 percent attributable to expected inflation). Since the business is incorporated, you can assume that it will operate indefinitely into the future. What is the value of your firm?

a.$8,571,428.5

b. $8,914,285.71

c. $9,871,000.21

d. $3,409,671.54

Reference no: EM131957009

Questions Cloud

Calculate the annualized cost of the trade credit terms : Calculate the annualized cost of the trade credit terms of 5/15?, net 75 when payment is made on the net due date?
What does minimal risk mean : Regardless of your type of study, every researcher must assume some type of minimal risk to their participants. What does minimal risk mean?
Apr for federal truth-in-lending purposes : Calculate the APR for federal truth-in-lending purposes.
Potential banks that agreed to lend the firm : Willy Café Inc. needs to borrow $100,000 for a period of one year. There are three potential banks that agreed to lend the firm,
What is the value of firm : Since the business is incorporated, you can assume that it will operate indefinitely into the future. What is the value of your firm?
Period cash flow present value : The sensitivity of a single period cash flow's present value to interest rate fluctuations depends inversely on the time horizon length at which the cash flow
What reaction should investors in appollo ltd shares : Appollo Ltd shares have a beta of 2.15. If the market's expected return decreases by 12 percent, what reaction should investors in Appollo Ltd shares expect?
Calculating the cash conversion? cycle : Network Solutions just introduced a? new, fully automated manufacturing plant that produces 2000 wireless routers per day with materials costs
Capital impact cash flows in a capital budgeting analysis : 1. Explain how changes in net working capital impact cash flows in a capital budgeting analysis

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd