EMC Corporation has never paid a dividend. Its current free cash flow of $400,000 is expected...
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EMC Corporation has never paid a dividend. Its current free cash flow of $400,000 is expected to grow at a constant rate of 5%. The weighted average cost of capital is WACC = 12%. Calculate EMC's estimated value of operations. Current and projected free cash flows for Radell Global Operations are shown below. Growth is expected to be constant after 2015, and the weighted average cost of capital is 11%. What is the horizon (continuing) value at 2016 if growth from 2015 remains constant? Free cash flow (millions of dollars) Actual 2013 $606.82 2014 $667.50 Projected 2015 $707.55 2016 $750.00 A stock is trading at $80 per share. The stock is expected to have a year-end dividend of $4 per share (D₁ = $4), and it is expected to grow at some constant rate g throughout time. The stock's required rate of return is 14% (assume the market is in equilibrium with the required return equal to the expected return). What is your forecast of g? EMC Corporation has never paid a dividend. Its current free cash flow of $400,000 is expected to grow at a constant rate of 5%. The weighted average cost of capital is WACC = 12%. Calculate EMC's estimated value of operations. Current and projected free cash flows for Radell Global Operations are shown below. Growth is expected to be constant after 2015, and the weighted average cost of capital is 11%. What is the horizon (continuing) value at 2016 if growth from 2015 remains constant? Free cash flow (millions of dollars) Actual 2013 $606.82 2014 $667.50 Projected 2015 $707.55 2016 $750.00 A stock is trading at $80 per share. The stock is expected to have a year-end dividend of $4 per share (D₁ = $4), and it is expected to grow at some constant rate g throughout time. The stock's required rate of return is 14% (assume the market is in equilibrium with the required return equal to the expected return). What is your forecast of g?
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Current Free cash flow FCF 400000 Growth rateg 5 WACC k ... View the full answer
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1439078082
4th Edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
Posted Date:
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