Question: Hi, please help! I have no idea how to answer this problem. Free Cash Flows Year 1= $21 million Year 2= $26 million Year 3=$30

Hi, please help! I have no idea how to answer this problem.

Free Cash Flows

Year 1= $21 million

Year 2= $26 million

Year 3=$30 million

Year 4=$31 million

Year 5=$33 million

XYZ Industries is expected to generate the above free cash flows over the next five years, after which free cash flows are expected to grow at a rate of 4% per year. If the weighted average cost of capital is 7% and XYZ has cash of $15 million, debt of $48 million, and 71 million shares outstanding, what is General Industries' expected current share price?

Answer in millions and round to the nearest cent.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Morgan is a training consultant for seven mid - sized manufacturing firms. On average, each of their seven clients calls for consulting assistance once every 2 0 days. Morgan typically spends an...

Hi, please help! I have no idea how to answer this problem. Year 1 2 3 4 5 Free Cash Flow $21 million $26 million $30 million $31 million $33 million XYZ Industries is expected to generate the above...

Free Cash Flow Year 1 $21 million Year 2 $26 million Year 3 $28 million Year 4 $31 million Year 5$33 million XYZ Industries is expected to generate the above free cash flows over the next five years,...

Homework help needed for NPV problem. Chart and pictures are attached below. Net Investment Straight Line Final year adjustments Sale of old Assets Terminal Value Depreciation Cost Base Salvage Value...

Please answer both :) A baseball player is offered a 5 -year contract that pays him the following amounts: Year 1: $1.6 million Year 2: $2.6 million Year 3:$2.3 million Year 4: $1.2 million Year 5:...

Pl answer all these questions /problems in excel sheets. Q1 The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year 1 2 3 4...

B V. Format Painter 4 ob ili IM = Clipboard Font Undo Alignmen B28 B 1 30.00% 70.00% 1,000,000 $11,870,000 7.30% 4.00% 4.00% 40.00% 1.30 $1,600,000 4.00% $2,300,000 $2,900,000 $3,300,000 $3.820,000...

Hello. I have provided the pages needed from the 10K report. Please help me with Questions 1 and 2 on the Statement of Cash Flows Please help me with Questions 1-4 on the Balance Sheet Please help me...

please show formulas. Base Case: DCF Analysis for new-plane investment Assumptions Additional acres (000) Price per acre Fuel cost per acre Annual cost of pilot (000) Annual cost of assistant (000)...

Hi! I need help with ONLY question 3 and 4 in the attachment, the ACME information. Please ignore the other questions. Thanks! Extra-Credits Take-Home Exam Each question below carries 10 points....

Hastings Corporation is interested in acquiring Vandell Corporation. Vandell has 1 million shares outstanding and a target capital structure consisting of 30% debt. Vandell's debt interest rate is...

i need dot net developer

a. Let A = {1, 2, 3, 4, 5, 6, 7} and B = {v, w, x, y, z}. Determine the number of functions /: A B where (i) f(A) = {v, x}; (ii) |f(A)| = 2; (iii) f(A) = {w, x, y}; (iv) If(A) | = 3; (v) f(A) = {u,...

Why the government needs to do budgeting every financial year

P-1) (100 Pts.) A chemical manufacturing company (CMC) has a contract for the procurement of the neccssaly chemicals from four suppliers. The chemicals purchased from Supplier A are priced at $20...

9. Are there consequences for colleagues who engage in demeaning or prejudicial behavior toward others?

13. Develop a detailed action plan to achieve this vision, and make commitments for particular actions necessary to bring your vision to fruition.

1. Do others see you acting comfortable around colleagues with nontraditional demographics (i.e., age, education, ethnicity, gender, race)?