For 2020 the free cash flow to the firm (FCFF) of ABC Co. was ₱30,000. The firm has total debt of ₱20,000, and there were 12,000 shares outstanding. The required rate of return is 9% and the estimated growth rate in FCFF is 6.5%. How much is the intrinsic value per share of ABC Co.? ₱80.45 ₱94.92 ₱104.83 ₱112.50 answer not given

For 2020 the free cash flow to the firm (FCFF) of ABC Co. was ₱30,000. The firm has total debt of ₱20,000, and there were 12,000 shares outstanding. The required rate of return is 9% and the estimated growth rate in FCFF is 6.5%. How much is the intrinsic value per share of ABC Co.? ₱80.45 ₱94.92 ₱104.83 ₱112.50 answer not given

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter7: Corporate Valuation And Stock Valuation

Section: Chapter Questions

Problem 1P: Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1...

See similar textbooks

Similar questions

The annual report of 2019 which shows an EBITDA of P5,000,000 and a total liability of P15,550,000. Evidently, the sales grew by 12% annually with a direct effect on the growth of free cash flow of 12% yearly. Last year, the free cash flow was reported to be P3,500,000. The weighted average cost of capital is 10%. Using the financial model, how much is the value of the equity?
A business will have net inflows of € 20 million, € 12 million, € 11 million, € 8 million, and € 5 million. for the next five years. Its current book value is € 30 million. The company has issued 10,000 bonds with an annual interest rate of 3%, with a nominal value of € 1,000 each and maturing in five years. If the market rate is 4%, what is the value of the business, bond and share capital?
Net income, currents assets and current liabilities for 2020 are expected to vary with sales. The projected sales in 2020 is ₱210M. The company plans to pay ₱0.05 cash dividends per share in 2020. How much is the projected current assets in 2020? ₱73,000,000 ₱71,000,000 ₱73,500,000 ₱70,000,000
A firm’s current profits are P550,000. These profits are expected to grow indefinitely at a constant annual rate of 5 percent. If the firm’s opportunity cost of funds is 8 percent, determine the value of the firm: a. The instant before it pays out current profits as dividends: b. The instant after it pays out current profits as dividends.
Assume your organization wishes to make a Php 200,000 investment with a private equity firm in 2021. Taking into account all of the risks, the current discount rate is 12%, and the revenue stream/dividends are as follows: 2022 50002023 60002024 70002025 80002026 90002027 100002028 11000 Determine the following:a. NPV for the period 2022 through 2028;b. Total NPV using manual computation;c. Total NPV using the Excel function; andd. IRR rate.
You are analysing NBM firm and obtained the following information: FCFF reported as R198 million, interest expense is R15 million. If the tax rate is 35% and the net debt of the firm increased by R20 million, what is the approximate market value of the firm if the FCFE grows at 3% and the cost of equity is 14%? R1,950 billion R2,497 billion R2,585 billion R3,098 billion R 1,893 billion
Young & Liu Inc.'s free cash flow during the just-ended year (t = o) was $100 million, and FCF is expected to grow at a constant rate of 5% in the future. If the weighted average cost of capital is 15%, what is the firm's value of operations, in millions? a. $998 O b. $1,050 Oc$1,158 Od. $948 Oe. $1,103
Assume your organization wishes to make a Php 200,000 investment with a private equity firm in 2021. Taking into account all of the risks, the current discount rate is 12%, and the revenue stream/dividends are as follows: 2022 50002023 60002024 70002025 80002026 90002027 100002028 11000 Determine the following: DO IT IN EXCELa. NPV for the period 2022 through 2028;b. Total NPV using manual computation;c. Total NPV using the Excel function; andd. IRR rate.
MedCorp's free cash flow to equity is P350 million and the firm's net debt increased by 20 million. It is reported that the firm's interest expense is P48 milion and it is assumed that its tax rate is 20%. The market capitalisation rate is 18% Calculate the Free Cash Flow to the Firm (FCFF) and market value of equity if its payout ratio is assumed to be 0.45 and the return on equity is 30 %? The weighted average cost of capital is estimated to be 18%. [Assume the free cash flow to equity grows indefinitely at the projected growth rate.
A firm projects net income to be RM500,000, intends to pay out RM125,000 in dividends, and had RM2 million of equity at the beginning of the year. The firm’s sustainable growth rate is? * 4.69% 15% 6.25% 5%
Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1 and by 5% in Year 2. Its operating profitability ratio (OP) is 10%, and its capital requirement ratio (CR) is 80%? What are the projected sales in Years 1 and 2? What are the projected amounts of net operating profit after taxes (NOPAT) for Years 1 and 2? What are the projected amounts of total net operating capital (OpCap) for Years 1 and 2? What is the projected FCF for Year 2?
Q. 16) Free Cash Inc. is expected to have free cash flow to equity next year (FCFE1) equal to $9 million as well as free cash flow to firm next year (FCFF1) equal to $12 million. The growth rate of both FCFE and FCFF is expected to be equal to 3% in perpetuity. The cost of equity for Free Cash Inc. is 18% while their after-tax cost of debt is equal to 8%. The debt-to-equity ratio (D/E) of Free Cash Inc. is equal to 1. What is the intrinsic value of Free Cash Inc.'s debt: Options - $100 million $37.50 million $16.67 million $60 million