Calculate the intrinsic value in 2011 of a share of Meta Fish, using the FCFF (free cash

Fantastic news! We've Found the answer you've been seeking!

Question:

Calculate the intrinsic value in 2011 of a share of Meta Fish, using the FCFF (free cash flow to the firm) model. For 2011 the FCFF was $50,000, total debt was $25,000, and there were 30000 shares outstanding.

The required rate of return (WACC) is 9% and the estimated growth rate in FCFF is 4.5%.

Related Book For answer-question

Intermediate Financial Management

ISBN: 978-1285850030

12th edition

Authors: Eugene F. Brigham, Phillip R. Daves

See More Books

Posted Date: Jun 03, 2023 08:10 AM

See More Questions

PQRS is a parallelogram. The vertices, P,Q and R have position vectors, relative to an origin O, a. Find OS vector . b. Find the lengths of the sides of the parallelogram. c. Find the interior angles...
1. Based on the forecasts above, use the spreadsheet below to construct a pro forma income statement for Idexo over the next five years. What is the annual growth rate of the firm's net income over...
In general, students are expected to meet the following objectives: 1) To ascertain cost of capital for a new project by using cost of capital of existing firms operating in the same business. (2)...
Consider the no-trade input/output situation presented in the following table for countries X and Y. Assuming that free trade is allowed, develop a scenario that will benefit the citizens of...
Describe a change in a reporting entity. How does a company account for such changes?
You are doing the first-year audit of Sherman School District and have been assigned responsibility for doing a four-column proof of cash for the month of October 2023. You obtain the following...
What is a compilation unit?
The 2012 comparative balance sheet and income statement of Rolling Hills, Inc., follow: Additionally, Rolling Hills purchased land of $23,600 by financing it 100% with long-term notes payable during...
The sphere 2+ y+z = 36 and the plane x + y + z = -10 intersect in an ellipse. Use Lagrange multipliers, or any other method, to find the lowest point (= point with minimal z-value) on this ellipse....
Hastings College pooled the individual investments of three of its funds on December 31, 2024. The recorded value and the fair market value of the investments on December 31, 2024, are presented...
Masters Consulting had the following selected transactions in July: 1 (Click the icon to view the transactions.) Requirements 1. Show how each transaction would be handled (in terms of recognizing...
7. A toy car of mass 10 kg initially moves with a speed of 2 m/s. How much work must be done on the car to increase its speed to 8 m/s?
Complete the following problems. a. Express the area A of the cross-section cut from the ellipsoid x 16 25 = 1 by the plane z = d as a function of d. (The area of an ellipse with semiaxes a and b is...
. Create a WPA form that will allow USF students to enter their personal data. Create an interface to collect a first name, last name. Your program will assign the student a U number and will display...
Do managers from all functional areas of the firm contribute input to the information system?
Linda is 40 years old, expect to retire in 25 years at age 65, and then live for 15 more years until age of 80. Her current income is $40,000 and she doesn't have any additional assets. If her target...
Consider the graph of the function f(x) = -x + 7 (see figure). (-1,6) -2 C = y 8 2 (2,3) (a) Find the equation of the secant line joining the points (-1, 6) and (2, 3). 4 (b) Use the Mean Value...
Danielle has an insurance policy with a premium of $75 per month. In September she is in an accident and receives a bill worth $2990 for the repair of her own property. Her deductible is $250 and her...
Define each of the following terms: a. Derivatives b. Enterprise risk management c. Financial futures; forward contract d. Hedging; natural hedge; long hedge; short hedge; perfect hedge; symmetric...
a. (1) What is the present value cost of owning the equipment? (2) Explain the rationale for the discount rate you used to find the PV. b. What is Lewis's present value cost of leasing the equipment?...
In its most recent financial statements, Del-Castillo Inc. reported $70 million of net income and $900 million of retained earnings. The previous retained earnings were $855 million. How much in...
How many board members did Ramalinga Raju implicate in the fraud?
How much money did the Rajus earn from sales of Satyam stock in the eight years preceding the fraud revelation?
When the fraud was revealed who took control of the company?

Calculate the intrinsic value in 2011 of a share of Meta Fish, using the FCFF (free cash

Question:

Expert Answer:

To calculate the intrinsic value of a share of Meta Fish in 2011 using the FCFF model we can use the ... View the full answer

Intermediate Financial Management

Students also viewed these accounting questions