Consider the following data for Miami Inc. Net income - 4000, Capital expenditure = 1200. depreciation...
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Consider the following data for Miami Inc. Net income - 4000, Capital expenditure = 1200. depreciation - 350, last year WC = 1400, this year WC = 1600, EBIT = 7000, t= 34%. The firm retired $500 debt and issued $800 new debt. Change in other assets is $80. (a) Calculate the free cash flow to equity. (b) Calculate free cash flow to firm. (c) Growth in free cash flow to equity is expected to be 3% forever, firm has 1500 shares outstanding, and Ke-10%. Calculate the target stock price P". Consider the following data for Miami Inc. Net income - 4000, Capital expenditure = 1200. depreciation - 350, last year WC = 1400, this year WC = 1600, EBIT = 7000, t= 34%. The firm retired $500 debt and issued $800 new debt. Change in other assets is $80. (a) Calculate the free cash flow to equity. (b) Calculate free cash flow to firm. (c) Growth in free cash flow to equity is expected to be 3% forever, firm has 1500 shares outstanding, and Ke-10%. Calculate the target stock price P".
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Step 11 a Free cash flow to equity FCFE Net Income Depreciation Capital expenditures ... View the full answer
Related Book For
Financial Reporting and Analysis Using Financial Accounting Information
ISBN: 978-1439080603
12th Edition
Authors: Charles H Gibson
Posted Date:
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