1 an all equity company has a book value equal to its, Ask an Expert

Finance

1. An all equity company has a book value equal to its market value, with $43k in cash and $67k in other assets. The firm has 7.5k shares outstanding and net income of $2k. If the firm uses its cash to complete a stock repurchase, what with the new EPS be? If the firm used its cash to pay a $5.73 dividend, what would the new stock price be?

2. You have the following data for Year 1. Find the Free Cash Flow for Year 1 (FCF1)

Year 1 Year 0

Depreciation 12.0 12.0

Interest expense 4.5 5.5

Gross Fixed Assets 16.5 13.0

Net Working Capital 7.5 8.3

Profit after Tax 15.0 14.5

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92760331

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