Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Basic Finance Expert

A privately held company is owned by a family, 10 millions hares of stock. Free Cash Flow of this company is $20 million, its WACC is 12%, and FCF is expected to grow at a constant annual rate of 7%. The company has holdings in marketable securities of $90 million. It is financed with $200 million of debt, $250 million of book common quity. Please who work so I can see how you came up with the answer. Really looking to understand more so then getting an answer.

1. What is the value of operations?
2. What is the total coporate Value?
3. What is the intrinsic value of equity?
4. What is the intrinsic stock price per share?
5. What would be a fair offer price (per share) to this company? Explain.

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M9862799

Have any Question?


Related Questions in Basic Finance

Question - how do book value and market value differ

Question - How do book value and market value differ? Provide an example found in a peer-reviewed journal article.

What is the standard hedge fund hf compensation structure

What is the standard hedge fund (HF) compensation structure and how do high watermark provision benefit or impose costs on HF investors?

Cowcow a builder of phone accessories has no debt and an

COWCOW, a builder of phone accessories has no debt and an equity cost of capital of 13%. Suppose that COWCOW decides to increase its leverage to maintain a market debt-to-value ratio of 0.4. Suppose its debt cost of capi ...

Assume now that you are an active investor and that your

Assume now that you are an active investor and that your research suggests that an investment in Disney will yield 12.5% a year for the next 5 years. Based upon the expected return of 9.95%, you would ¤Buy the stock ¤Sel ...

Hope bonds have a coupon rate of 7 and mature in 7 years

Hope bonds have a coupon rate of 7% and mature in 7 years. Assuming semi-annual coupons with face value of $100, what is the value of this bond? Similar bonds yield 6%.

Imagine you are the chief adviser to the australian prime

Imagine you are the Chief adviser to the Australian Prime Minister. 1) Clearly explain to him the meaning of 'subprime debt'? What are the risks and advantages of such financial instruments? a) What is a CDO? b) What is ...

For each of the following ytm figures calculate the price

For each of the following YTM figures, calculate the price and current yield for a ten-year, 5.00-percent, semi-annual pay bond with a face value of $1,000. YTM= 4% Price and current yield

What are the possible downsides of momentum investing is it

What are the possible downsides of momentum investing? Is it worth it do utilise this approach?

A factory manager must decide whether to stock a particular

A factory manager must decide whether to stock a particular spare part. The part is absolutely essential to the operation of certain machines in the plant. Stocking the part costs $10 per day in storage and cost of capit ...

2 part questionpart 1 what do you think is the item that

2 part question: Part 1: What do you think is the item that accounts for the most cost in any hospital's budget? Can you outline ways to keep this cost under control? Part 2: Do think it is more difficult for a manager t ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As