Question: Please attempt the question if you can solve all the questions, please do not attempt if you are going to solve only 1 part. make

Please attempt the question if you can solve all the questions, please do not attempt if you are going to solve only 1 part.

Please attempt the question if you can solve all the questions, please

do not attempt if you are going to solve only 1 part.

make relevant comparisons. Abercrombe is listed on the AMEX and Gunter on the NYSE, while BRC will be traded in the Nasdaq market. end B&C s free cash flows should increase. B\&C anticipates the following free cash flows over the next 5 years: model in Part a. Do not round intermediate calculations. Round your answers to two decimal places. by Abercrombe's P/E ratio you get a price. What range of prices do you get? Do not round intermediate calculations. Round your answers to the nearest cent. The range of prices: from $ to $ How does this compare with the price you get using the corporate valuation model? The price obtained with the corporate valuation model is this range of prices. Tempest Corporation expects an EBIT of $51,000 every year forever. The company currently has no debt, and its cost of equity is 14 percent. The tax rate is 25 percent. a. What is the current value of the company? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b-1. Suppose the company can borrow at 11 percent. What will the value of the firm be if the company takes on debt equal to 40 percent of its unlevered value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b-2. Suppose the company can borrow at 11 percent. What will the value of the firm be if the company takes on debt equal to 100 percent of its unlevered value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c1. What will the value of the firm be if the company takes on debt equal to 40 percent of its levered value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c-2. What will the value of the firm be if the company takes on debt equal to 100 percent of its levered value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) make relevant comparisons. Abercrombe is listed on the AMEX and Gunter on the NYSE, while BRC will be traded in the Nasdaq market. end B&C s free cash flows should increase. B\&C anticipates the following free cash flows over the next 5 years: model in Part a. Do not round intermediate calculations. Round your answers to two decimal places. by Abercrombe's P/E ratio you get a price. What range of prices do you get? Do not round intermediate calculations. Round your answers to the nearest cent. The range of prices: from $ to $ How does this compare with the price you get using the corporate valuation model? The price obtained with the corporate valuation model is this range of prices. Tempest Corporation expects an EBIT of $51,000 every year forever. The company currently has no debt, and its cost of equity is 14 percent. The tax rate is 25 percent. a. What is the current value of the company? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b-1. Suppose the company can borrow at 11 percent. What will the value of the firm be if the company takes on debt equal to 40 percent of its unlevered value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b-2. Suppose the company can borrow at 11 percent. What will the value of the firm be if the company takes on debt equal to 100 percent of its unlevered value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c1. What will the value of the firm be if the company takes on debt equal to 40 percent of its levered value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c-2. What will the value of the firm be if the company takes on debt equal to 100 percent of its levered value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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