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Choose the correct answer with solution. Pls choose only the answer in the choices.
Q1. How much is the net cash flow of Gising Company in Year 1?
a. 390,000
b. 290,000
c. 220,000
d. 140,000
Q2. How much is the terminal value recognized after the three-year
a. 10,880,000
b. 12,466,667
c. 13,090,000
d. 10,880,000
Q3. What is the net Cash flow to the Firm?
a. 11,140,489
b. 12,103,272
c. 12,808,412
d. 13,974,000
Q4. What is the net cash flow to equity?
a. 10,140,489
b. 11,103, 272
c. 11, 140, 489
d. 12, 103, 272
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- Brook Corporation’s free cash flow for the current year (FCF0) was $3.00 million. Its investors require a 13% rate of return on (WACC = 13%). What is the estimated value of operations if investors expect FCF to grow at a constant annual rate of (1) −5%, (2) 0%, (3) 5%, or (4) 10%?The free cash flows (in millions) shown below are forecast by Simmons Inc. If the weighted average cost of capital is 13% and the free cash flows are expected to continue growing at the same rate after Year 3 as from Year 2 to Year 3, what is the Year 0 value of operations, in millions? Year: 1 2 3 Free cash flow: −$20 $42 $45 $680 $648 $617 $586 $714The table below shows the forecast cash flow information of Good Time Inc. for the next year. The required debt payment in the next year is $88 million, with the current market value of $75 million. The company pays no tax. If you invest in the corporate debt of Good Time Inc. today, what is your expected return on this investment? Cash flow in the next year Economy Probability Amount Boom 0.6 $148 million Recession 0.4 I$61 million O 18.77% O 10.29% O 2.93% O 28.67%
- The forecast for Global Exports' free cash flows for next year is provided in the table below. Selected Financial Information Global Exports Inc. ($000s) Operating Cash Flow Net Working Capital CAPEX Debt Shares Outstanding O $7.32 O $6.74 Assume that free cash flow is paid at the end of each year and we are at the beginning of next year. Last year's values are for the year end yesterday. Analysts expect Global Exports' cash flow to grow at 1% in perpetuity. The WACC for Global is 8%. What is the fair price for Global Exports' shares today? O $6.14 Last Year 93,435 325,000 22,876 450,255 50,000 O $6.85 Next Year 103,462 344,000 28,975 485,850 50,000Sisyphus Corp. has projected that their performance for the next five years results in the following: YEAR Revenue Cash Operating Expenses 1 50 30 2 55.00 33.00 3 60.50 36.30 4 66.55 39.93 5 73.21 43.92 Terminal value was assumed based on the growth rate of the cash flows. Annual Capital investment requirement is at P2 million. Income Tax rate is at 30%. The required rate or return for their business is 14%. Requirement: Compute for the growth rate How much is the Terminal Value? How much is the Free Cash Flow for years 1-5? How much is the Discounted Net Cash Flows to the Firm for years 1-5?The forecast for Global Exports’ free cash flows for next year is provided in the table below. Selected Financial Information Global Exports Inc. ($000s) Last Year Next Year Operating Cash Flow 74,230 78,076 Net Working Capital -12,240 -13,460 CAPEX 8,720 15,400 Debt 80,100 100,200 Shares Outstanding 10,000 10,000 Assume that free cash flow is paid at the end of each year and we are at the beginning of next year. Last year’s values are for the year end yesterday. Analysts expect Global Exports’ cash flow to grow at 3% in perpetuity. The WACC for Global is 11%. What is the fair price for Global Exports’ shares today? Responses $62.37 $62.37 $69.85 $69.85 $73.27 $73.27 $71.86 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- 1. Chachagogo, Inc. is planning its operations for next year, and the CEO wants you to forecast the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Last year’s sales P200,000 Last year's accounts payable P50,000 Sales growth rate 40% Last year's notes payable P25,000 Last year’s current assets P65,000 Last year's accruals P20,000 Last year’s noncurrent assets P70,000 Target plowback ratio 75.0% Last year’s profit margin 20.0% Group of answer choices -P50,000 -P16,000 -P54,000 -P44,000 -P40,000 2. Jonson, Inc. is planning its operations for the coming year, and the CEO wants you to forecast the firm's additional funds needed (AFN). Data for use in the forecast are shown below.…Kabab Co. is considering a $240,000 investment, which will provide net returns of $110,000, $160,000, and $220,000 in the second, third, and fourth years, respectively. What is the payback period? Round up to the next month Use the following table: Year Cash Outflow Cash Inflow Net Cash Flow Cumulative Cash FlowYou expect ATM Corporation to generate the following free cash flows over the next five years: Year 1 2 3 4 5 FCF ($ millions) 75 84 96 111 120 Beginning with year six, you estimate that ATMʹs free cash flows will grow at 6% per year and that ATMʹs weighted average cost of capital is 15%. The enterprise value of ATM corporation is closest to: A. $1017.66 million B. $314.98 million C. $1413.33 million D. $702.67 million
- A company is planning to expand its business is costing OMR 19252. The following cash inflows are expected. Calculate Profitability index given the rate of discounting to be 3.008% Years Machine A 12396 13300 12500 4 14500 2. 3.Find the present value of the streams of cash flows shown in the following table. Assume that the firm's opportunity cost is 12%. A B C Year Cash Flow Year Cash Flow Year Cash Flow 1 -$2,000 1 $ 10,000 1-5 $ 10,000/yr 2345 5 2 3,000 2-5 5,000/yr 6-10 8,000/yr 4,000 6 7,000 6,000 8,000Find the present value of the following stream of cash flows, assuming that the firm’s required return is 14%. Year Amount $10,000 35,000 24,000 $121,256 $ 60,513 $ 69,000 $ 51,885
