Question: 30 8.20 points Compressed Adjusted Present Value Biocentrics Inc.'s expected free cash flow and its future free cash flow growth rate is listed to the

30 8.20 points Compressed Adjusted Present Value Biocentrics Inc.'s expected free cash flow and its future free cash flow growth rate is listed to the right FCF free cash flow FCF B growth rate $ 510,000,00 8,00% 2 Biocentrics currently has no debt, and its cost of unlevered equity, su and tax rate is stated to the right. rucost of unlevered equity T tax rate 12.00 35,00% 10 Use the compressed adjusted value approach to answer the following questions. 1 a. Find Vu (5 points) 12 1 15 b. Find V and rse if Biocentrics uses the debt amount and its cost listed to the right. (5 points) Use the APV model that allows for growth Debt amount ro - cost of debt $6.000.000,00 6,00% 16 12 BESED c. Based on Vu from Part a, find Vandrs using the MM model (with taxes) il Biocentrics uses the amount of debt and cost of debt from part b. (5 points) 19 20 d. Explain the difference between your answers to Parts b and c. (5 points) 21 Please show work and answer questions completely to receive full credit 23 C10 A D 22 Please show work and answer questions completely to receive full credit. 23 24 25 26 27 28 29 30 a Vu 31 32b VL rse 34 3310 Vi using MM rse using MM 36 37 38 d The difference between the answers to parts and care as follows: 39 40 41 42 30 8.20 points Compressed Adjusted Present Value Biocentrics Inc.'s expected free cash flow and its future free cash flow growth rate is listed to the right FCF free cash flow FCF B growth rate $ 510,000,00 8,00% 2 Biocentrics currently has no debt, and its cost of unlevered equity, su and tax rate is stated to the right. rucost of unlevered equity T tax rate 12.00 35,00% 10 Use the compressed adjusted value approach to answer the following questions. 1 a. Find Vu (5 points) 12 1 15 b. Find V and rse if Biocentrics uses the debt amount and its cost listed to the right. (5 points) Use the APV model that allows for growth Debt amount ro - cost of debt $6.000.000,00 6,00% 16 12 BESED c. Based on Vu from Part a, find Vandrs using the MM model (with taxes) il Biocentrics uses the amount of debt and cost of debt from part b. (5 points) 19 20 d. Explain the difference between your answers to Parts b and c. (5 points) 21 Please show work and answer questions completely to receive full credit 23 C10 A D 22 Please show work and answer questions completely to receive full credit. 23 24 25 26 27 28 29 30 a Vu 31 32b VL rse 34 3310 Vi using MM rse using MM 36 37 38 d The difference between the answers to parts and care as follows: 39 40 41 42
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
