Question: Please Help! Consider the table given below to answer the following question. Year 10 Asset value Earnings Net investment Free cash flow (FCF) Return on
Please Help!
Consider the table given below to answer the following question. Year 10 Asset value Earnings Net investment Free cash flow (FCF) Return on equity (ROE) Asset growth rate Earnings growth rate 1 2. 10.00 11.20 1.20 1.34 1.20 1.34 0.00 0.00 0.12 0.12 0.12 0.12 0.12 3 12.54 1.51 1.51 0.00 0.12 0.12 0.12 4 14.05 1.69 1.26 0.42 0.12 0.09 0.12 5 15.31 1.84 1.38 0.46 0.12 0.09 0.09 6 16.69 1.92 1.50 0.42 0.115 0.09 0.04 7 18.19 2.00 1.09 0.91 0.11 0.06 0.04 8 19.29 2.03 1.16 0.87 0.105 0.06 0.01 9 20.44 1.64 1.23 0.41 0.08 0.06 -0.19 21.67 1.73 1.30 0.43 0.08 0.06 0.06 Assuming that competition drives down profitability (on existing assets as well as new investment) to 11.5% in year 6, 11% in year 7, 10.5% in year 8, and 8% in year 9 and all later years. What is the value of the concatenator business? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Answer is complete but not entirely correct. Present $ 23,361.00 million value Consider the table given below to answer the following question. Year 10 Asset value Earnings Net investment Free cash flow (FCF) Return on equity (ROE) Asset growth rate Earnings growth rate 1 2. 10.00 11.20 1.20 1.34 1.20 1.34 0.00 0.00 0.12 0.12 0.12 0.12 0.12 3 12.54 1.51 1.51 0.00 0.12 0.12 0.12 4 14.05 1.69 1.26 0.42 0.12 0.09 0.12 5 15.31 1.84 1.38 0.46 0.12 0.09 0.09 6 16.69 1.92 1.50 0.42 0.115 0.09 0.04 7 18.19 2.00 1.09 0.91 0.11 0.06 0.04 8 19.29 2.03 1.16 0.87 0.105 0.06 0.01 9 20.44 1.64 1.23 0.41 0.08 0.06 -0.19 21.67 1.73 1.30 0.43 0.08 0.06 0.06 Assuming that competition drives down profitability (on existing assets as well as new investment) to 11.5% in year 6, 11% in year 7, 10.5% in year 8, and 8% in year 9 and all later years. What is the value of the concatenator business? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Answer is complete but not entirely correct. Present $ 23,361.00 million value
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
