Current and projected free cash flows for Radell Global Operations are shown below. Actual Projected 2021 2020 2022 2019 $610.660 $671.340 $711.387 $761.180 Free cash flow (millions of dollars) Growth is expected to be constant after 2021, and the weighted average cost of capital is 11.15%. What is the horizon (continuing) value at 2022 if growth from 2021 remains constant? Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to the nearest whole number. $ million

Current and projected free cash flows for Radell Global Operations are shown below. Actual Projected 2021 2020 2022 2019 $610.660 $671.340 $711.387 $761.180 Free cash flow (millions of dollars) Growth is expected to be constant after 2021, and the weighted average cost of capital is 11.15%. What is the horizon (continuing) value at 2022 if growth from 2021 remains constant? Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to the nearest whole number. $ million

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 7P: Current and projected free cash flows for Radell Global Operations are shown here. Growth is...

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Current and projected free cash flows for Radell Global Operations are shown below. Actual Projected 2019 2020 2021 2022 Free cash flow $603.460 $664.140 $704.187 $746.440 (millions of dollars) Growth is expected to be constant after 2021, and the weighted average cost of capital is 10.8%. What is the horizon (continuing) value at 2022 if growth from 2021 remains constant? Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to the nearest whole number.
Current and projected free cash flows for Radell Global Operations are shown below. Actual Projected 2019 2020 2021 2022 Free cash flow $601.740 $662.420 $702.467 $751.560 (millions of dollars) Growth is expected to be constant after 2021, and the weighted average cost of capital is 11.05%. What is the horizon (continuing) value at 2022 if growth from 2021 remains constant? Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to the nearest whole number. $ million
Horizon Value of Free Cash Flows Current and projected free cash flows for Radell Global Operations are shown below. Actual 2021 2022 Projected 2023 2024 Free cash flow (millions of dollars) $616.100 $676.780 $716.827 $766.355 Growth is expected to be constant after 2023, and the weighted average cost of capital is 12%. What is the horizon (continuing) value at 2024 if growth from 2023 remains constant? Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to the nearest whole number. $ million
Current and projected free cash flows for Radell Global Operations are shown below (in $ millions): Growth is expected to be constant after 2021, and the weighted average cost of capital is 10.7%. What is the horizon (continuing) value at 2022 if growth from 2021 remains constant? Do not round intermediate calculations. Enter your answer in millions, WITHOUT comma or separator. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to the nearest whole number.
The annual cash flows of a project are shown in the table below: Year t = 0 t = 1 t = 2 Cash Flow -$951 M $2,710 M -$1,887 M The discount rate for the project is 29.0% per annum and spreadsheet analysis has found an internal rate of return of 21.0% per annum. Given this information, should the firm invest in the project?
You are evaluating Adidas and expect it to generate the following free cash flows over your forecast horizon: Year 1 2 3 4 5 FCF ($ millions) 53.1 66.9 77.8 75.5 82.1 After your forecast horizon, you expect FCF to grow at 4.3% per year forever. If the weighted average cost of capital (dsicount rate) is 13.8%, what is: a. The enterprise value of Adidas. b. Assume Adidas has no excess cash, debt of $318 million, and 39 million shares outstanding, what is its stock price? Question content area bottom Part 1 a. The enterprise value will be $enter your response here million. (Round to two decimal places.) b. The stock price will be $enter your response here. (Round to two decimal places.)
Use the information provided below to answer questions 23 to 25. The projected annual net cash flows associated with an investment opportunity are shown below in Table 5. The expected rate of return on the investment is 12%. Year 1 220 000 250 000 300 000 200 000 5 180 000 Table 5: Annual net cash flows of the investment opportunity. 2 3 4 Question 23 Question 24 Future Cash flows A R859 028 B R902 575 C R838 510 D R866 704 Discount factor Question 25 K Determine the missing values represented by K, L, M, and N in Table 5. A K = 0.8929; L = R196 438; M = 0.7118 and N = R213 540 BK = 0.9009; L = R198 198; M = 0.7312 and N = R219 360 C K=0.9174; L = R201 828; M = 0.7722 and N = R231 660 D K = 0.8929; L = R196 438; M = 0.7722 and N = R231 540 A R811 490 B R850 000 C R848 510 D R860 000 0.7972 M Calculate the total present value of the net cash flows from the investment opportunity. 0.6355 0.5674 Present Values L 199 300 N 127 100 102 132 If the Net Present Value of the investment…
Horizon Value of Free Cash Flows Jen Britt Incorporated had a free cash flow (FCF) of $78 million in 2023. The firm projects FCF of $255 million in 2024 and $590 million in 2025. FCF is expected to grow at a constant rate of 4% in 2026 and thereafter. The weighted average cost of capital is 8%. What is the current (i.e., beginning of 2024) value of operations? Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to two decimal places. LA 13001.89 million
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A company forecasts a free cash flow of $55 million in Year 3, i.e., at t = 3, and it expects FCF to grow at a constant rate of 5.5% thereafter. If the weighted average cost of capital (WACC) is 10.0% and the cost of equity is 15.0%, then what is the horizon, or continuing, value in millions at t = 3? Group of answer choices $1,083 $1,148 $1,289 $1,186 $1,212