For the following forecasted data of firm Info Edge, calculate the intrinsic value of equity and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
For the following forecasted data of firm Info Edge, calculate the intrinsic value of equity and value of the firm using free cash flow to equity and free cash flow to firm: Number of outstanding shares outstanding 450000, beta 1.7, risk free rate 5.3%, expected market return 8.9%, constant growth rate of the company 5.2% after five years, Market value of debt 450000 and WACC 10.7%, cash and cash equivalents 10000 Net Income Depreciation Capital Expenditure Increase in working capital New Debt Debt paid Interest 2023 900,000 250,000 300,000 -60,000 2024 2025 950,000 1000,000 270,000 285,000 200,000 400,000 100,000 -79,000 75,000 189,000 100,000 150,000 430,000 170,000 100,000 400,000 $20,000 2026 1100,000 295,000 700,000 35,000 157,000 125,000 450,000 For the following forecasted data of firm Info Edge, calculate the intrinsic value of equity and value of the firm using free cash flow to equity and free cash flow to firm: Number of outstanding shares outstanding 450000, beta 1.7, risk free rate 5.3%, expected market return 8.9%, constant growth rate of the company 5.2% after five years, Market value of debt 450000 and WACC 10.7%, cash and cash equivalents 10000 Net Income Depreciation Capital Expenditure Increase in working capital New Debt Debt paid Interest 2023 900,000 250,000 300,000 -60,000 2024 2025 950,000 1000,000 270,000 285,000 200,000 400,000 100,000 -79,000 75,000 189,000 100,000 150,000 430,000 170,000 100,000 400,000 $20,000 2026 1100,000 295,000 700,000 35,000 157,000 125,000 450,000
Expert Answer:
Answer rating: 100% (QA)
For the following forecasted data of firm Info Edgecalculate the intrinsic value of equity and value ... View the full answer
Related Book For
Financial management theory and practice
ISBN: 978-1439078099
13th edition
Authors: Eugene F. Brigham and Michael C. Ehrhardt
Posted Date:
Students also viewed these finance questions
-
How are the different models of health interconnected or not interconnected? What one "Ah-Ha" moment occurred when learning about these four stages? How might one (or more) of these models be...
-
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...
-
This case draws on material from Chapters 1820. See MyLab Finance for the data in Tables 1, 2, 3, and 4 and the spreadsheet referenced in the case questions. Idexo Corporation is a privately held...
-
Develop a data type ResizingArrayQueueOfStrings that implements a queue with a fixed-length array in such a way that all operations take constant time. Then, extend your implementation to use a...
-
The accompanying data file shows the midterm and final scores for 32 students in a statistics course. a. Estimate a student's final score as a function of his/ her midterm score. b. Find the standard...
-
A researcher conducts an analysis in which the null hypothesis is not rejected, yet a large measure of effect size is calculated. What advice might you give the researcher, and why?
-
Lockwood Company has two production departments, Fabricating and Assembling. At a department managers' meeting, the controller uses flexible budget graphs to explain total budgeted costs. Separate...
-
Sensitivity analysis Sensitivity analysis is an important component of any budgeting exercise. Which estimates do you think will be most crucial in developing a master budget? Why?
-
Exercise 1-15 (Algo) Traditional and Contribution Format Income Statements [LO1-6] The Alpine House, Incorporated, is a large retailer of snow skis. The company assembled the information shown below...
-
Pacifico Company, a U.S.-based Importer of beer and wine, purchased 1,500 cases of Oktoberfest-style beer from a German supplier for 375,000 euros. Relevant U.S. dollar exchange rates for the euro...
-
Philip is chasing his dog. He has four times more mass than the dog, but he can only run half as fast as the dog. What is Philip's momentum, compared to his dog's
-
Know the reasons for using value management in projects.
-
What is a system attribute?
-
Explain the difference between the STRIPS language and the ADL language. Why is ADL described as being more expressive than STRIPS? What kinds of problems might ADL be used to solve for which STRIPS...
-
Discuss the techniques of value planning, value engineering, and value analysis.
-
Explain the importance of integrating cost and value in projects.
-
Mara and Bob form Robin Corporation. Mara transfers propertyworth $205,000 with a basis of $71,750 for 70 shares in RobinCorporation. Bob receives 30 shares for property worth $82,000 witha bas 2...
-
The pendulum consists of two rods: AB is pin supported at A and swings only in the y-z plane, whereas a bearing at B allows the attached rod BD to spin about rod AB. At a given instant, the rods have...
-
What is the implied interest rate on a Treasury bond (%100,000) futures contract that settled at 10016? If interest rates increased by 1% what would be the contracts new value?
-
Early in September 1983, it took 245 Japanese yen to equal $1. More than 20 years later, that exchange rate had fallen to 108 yen to $1. Assume that the price of a Japanese-manufactured automobile...
-
Shao Airlines is considering two alternative planes. Plane A has an expected life of 5 years, will cost $100 million, and will produce net cash flows of $30 million per year. Plane B has a life of 10...
-
Identify several nonquantitative factors that are apt to play a decisive role in the final selection of projects for capital expenditures.
-
In what way does depreciation affect the analysis of cash flows for a proposed capital expenditure?
-
Why are the net present value and the internal rate of return models superior to the payback period and the accounting rate of return models?
Study smarter with the SolutionInn App