Question: Please answer question 9-11 using thr information provided ! PLEASE SHOW ALL WORK Use the following information to answer questions 9, 10 and 11 Analysts
Use the following information to answer questions 9, 10 and 11 Analysts project the following cash flows for Hopkin's Corporation during the next three years: Year 1: - $27 million (this is negative $27 million), Year 2: $42 million, Year 3: $52 million. Free cash flow is then expected to grow at a constant 6% rate. Hopkin's weighted average cost of capital is WACC = 11%. 9) (10 pts) What is Hopkin's terminal, or horizon, value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3.) 10) (10 pts) What is the current value of operations for Hopkin's? 11) (8 pts) Suppose Hopkin's has $12 million in marketable securities, $75 million in debt, and 22 million shares of stock. What is the intrinsic price per share
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