Webster Global Services has outstanding debt of 18 and equity of 12. Calculate the debt-to-equity ratio (as a percentage).
Orlando Pixie Dust is considering an option to buy some land in Brazil 4 years into the future. The acquisitions department discounts future projects at 7%. Calculate the discount factor that will be applied to the future cash flow.
Swamp and Sand Industries has outstanding debt of 75 and equity of 51. Calculate the equity as a percentage of total assets.
Webster Global Partners (WGP) is evaluating an investment in MiCasa, SA., a distributor of home appliances. As with any venture capitalist, they seek to sell out after 5 years. WGP estimates a free cash flow multiple of 1.7. Free cash flow in year 5 is expected to be $108 million. MiCasa, S.A. is expected to be sold at its terminal value. Calculate the terminal value using the multiple method. Your firm's beta is 1.6, comparable T-bond rates are 4, and the market risk premium is 2. Calculate the required return on your stock.
Webster Global Parnters (WGP) is evaluating an investment in Pulang, SA., a distributor of home appliances. As with any venture capitalist, they seek to sell out after 5 years. WGP estimates a required rate of return of 9.4%. After five years the growth rate is project to be 4.9% per year. Free cash flow in year 5 is expected to be $137 million. Pulang is expected to be sold at its terminal value. Calculate the terminal value.
Swamp and Sand Industries has outstanding debt of 63and equity of 65. Calculate the debt as a percentage of total assets.