Question: Hi can you please answer these questions it will be dearly appreciated :) Thanks! Quantitative Problem 1: A.) Assume today is December 31, 2013. Barrington

Hi can you please answer these questions it will be dearly appreciated :)

Thanks!

Quantitative Problem 1:

A.) Assume today is December 31, 2013. Barrington Industries expects that its 2014 after-tax operating income [EBIT(1 T)] will be $410 million and its 2014 depreciation expense will be $60 million. Barrington's 2014 gross capital expenditures are expected to be $110 million and the change in its net operating working capital for 2014 will be $20 million. The firm's free cash flow is expected to grow at a constant rate of 5% annually. Assume that its free cash flow occurs at the end of each year. The firm's weighted average cost of capital is 8.2%; the market value of the company's debt is $2.6 billion; and the company has 170 million shares of common stock outstanding. The firm has no preferred stock on its balance sheet and has no plans to use it for future capital budgeting projects. Using the corporate valuation model, what should be the company's stock price today (December 31, 2013)? Round your answer to the nearest cent. Do not round intermediate calculations. $ per share

B.) Barrington Industries. forecasts the year-end free cash flows (in millions) shown below.

Year 1 2 3 4 5
FCF -$22.61 $37.3 $43.3 $52.5 $55.9

The weighted average cost of capital is 9%, and the FCFs are expected to continue growing at a 4% rate after Year 5. The firm has $25 million of market-value debt, but it has no preferred stock or any other outstanding claims. There are 18 million shares outstanding. What is the value of the stock price today (Year 0)? Round your answer to the nearest cent. Do not round intermediate calculations.

C.) Barrington Industries just paid a common dividend, D0, of $1.10. It expects to grow at a constant rate of 2% per year. If investors require a 9% return on equity, what is the current price of Barrington Industries common stock? Round your answer to the nearest cent. Do not round intermediate calculations. $ per share

D.) Barrington Industries has perpetual preferred stock outstanding that pays a constant annual dividend of $1.60 at the end of each year. If investors require an 8% return on the preferred stock, what is the price of the firm's perpetual preferred stock? Round your answer to the nearest cent. Do not round intermediate calculations. $ per share

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