1 2 3 16.00 17.12 After the three year period, Care4UMed is expected to grow at...

    

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1 2 3 16.00 17.12 After the three year period, Care4UMed is expected to grow at a constant rate of 7% and its WACC is 13%. Care4UMed has $35 million of debt and $120 million shares of stock outstanding. O HV₁ = O HV3 18.32 According to the video, what is the formula for Care4UMed's horizon value? FCF 1+g O HV3 = FCF WACC-9 O HV4 FCF5 x (1 + g) FCF (WACC-g)³ Care4UMed's horizon value is According to the video, what is the formula for the firm's value today? Vo = V₁ = Vo = Vo = FCF (1+WACC)¹ HV3 (1+WACC) FCF (1+WACC)¹ FCF (1+WACC)¹ Care4UMed's value today is FCF₂2 (1+WACC)² Care4UMed's equity is FCF₂2 (1+WACC)² FCF₂2 (1+WACC)² million. FCF3 (1+WACC)³ FCF3 (1+WACC)³ FCF3 (1+WACC)³ million. According to the video, the value of equity is found as ▼ million. + + HV3 (1+WACC) HV3 (1+WACC)³ + HV3 According to the video, the price per share is found as Care4UMed's the price per share is Step 3: Practice: Corporate Valuation Now it's time for you to practice what you've learned. The following table shows projected free cash flows for the next four years for Quick Sky Corp., a company producing wind turbines. Year 1 2 W N 3 4 Free Cash Flow (Millions of dollars) 16.00 17.12 18.32 19.60 After the four year period, Quick Sky is expected to grow at a constant rate of 7% and its WACC is 13%. Quick Sky has $35 million of debt and $120 million shares of stock outstanding. Quick Sky's value today is million and the price per share today is 1 2 3 16.00 17.12 After the three year period, Care4UMed is expected to grow at a constant rate of 7% and its WACC is 13%. Care4UMed has $35 million of debt and $120 million shares of stock outstanding. O HV₁ = O HV3 18.32 According to the video, what is the formula for Care4UMed's horizon value? FCF 1+g O HV3 = FCF WACC-9 O HV4 FCF5 x (1 + g) FCF (WACC-g)³ Care4UMed's horizon value is According to the video, what is the formula for the firm's value today? Vo = V₁ = Vo = Vo = FCF (1+WACC)¹ HV3 (1+WACC) FCF (1+WACC)¹ FCF (1+WACC)¹ Care4UMed's value today is FCF₂2 (1+WACC)² Care4UMed's equity is FCF₂2 (1+WACC)² FCF₂2 (1+WACC)² million. FCF3 (1+WACC)³ FCF3 (1+WACC)³ FCF3 (1+WACC)³ million. According to the video, the value of equity is found as ▼ million. + + HV3 (1+WACC) HV3 (1+WACC)³ + HV3 According to the video, the price per share is found as Care4UMed's the price per share is Step 3: Practice: Corporate Valuation Now it's time for you to practice what you've learned. The following table shows projected free cash flows for the next four years for Quick Sky Corp., a company producing wind turbines. Year 1 2 W N 3 4 Free Cash Flow (Millions of dollars) 16.00 17.12 18.32 19.60 After the four year period, Quick Sky is expected to grow at a constant rate of 7% and its WACC is 13%. Quick Sky has $35 million of debt and $120 million shares of stock outstanding. Quick Sky's value today is million and the price per share today is

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