3. What is the net cash flow to the firm of Wicked Inc.? 4. What is...

 

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3. What is the net cash flow to the firm of Wicked Inc.? 4. What is the net cash flow to oquity of Wicked Inc.? Electricute Inc. has projected net cash flows from operations at Php45 Milion on the first year. In order to realize the 10% growth for the next 4 years, Flectricute purchased CAPEX amounting to Php250 Million within the first vear. Half of the CAPEX was funded by liability and no other long term liability was existing before the purchase on the first year. 1. For its five-year projection, Electricute's discounted net cash flow to the firm assuming a discount rate of 7.5% is_ 2. For its five-year projection, Electricute's net cash flow to equity assuming a discount rate of 7.5% is P5-5. An analyst is evaluating Wicked Inc. and shared the following projected net cash flows for the next 10 years. 1,000,000 1,000,000 1,150,000 1,200,000 1,200,000 1,300,000 1,500,000 1,700,000 2,000,000 2,200,000 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Wicked expects to continue to grow infinitely using the CAGR of the 10-year forecast period. Required return relevant to Wicked Inc. is at 12.1%. Requirements: 1. What is the compounded annual growth rate of 10-yr net cash flow projection of Wicked Inc.? 2. What is the terminal value to be incorporated in the net cash flow to the firm computation? 3. What is the net cash flow to the firm of Wicked Inc.? 4. What is the net cash flow to oquity of Wicked Inc.? Electricute Inc. has projected net cash flows from operations at Php45 Milion on the first year. In order to realize the 10% growth for the next 4 years, Flectricute purchased CAPEX amounting to Php250 Million within the first vear. Half of the CAPEX was funded by liability and no other long term liability was existing before the purchase on the first year. 1. For its five-year projection, Electricute's discounted net cash flow to the firm assuming a discount rate of 7.5% is_ 2. For its five-year projection, Electricute's net cash flow to equity assuming a discount rate of 7.5% is P5-5. An analyst is evaluating Wicked Inc. and shared the following projected net cash flows for the next 10 years. 1,000,000 1,000,000 1,150,000 1,200,000 1,200,000 1,300,000 1,500,000 1,700,000 2,000,000 2,200,000 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Wicked expects to continue to grow infinitely using the CAGR of the 10-year forecast period. Required return relevant to Wicked Inc. is at 12.1%. Requirements: 1. What is the compounded annual growth rate of 10-yr net cash flow projection of Wicked Inc.? 2. What is the terminal value to be incorporated in the net cash flow to the firm computation?

Answer rating: 100% (QA)

Answer P54 NUMBER 1 Discounted Cash Flow To The Firm Cash Flow Discount Facto... View the full answer