1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Tema [17]
2 years ago
13

Michonne Corp.'s Free Cash Flow (FCF) for the most recent year (year 0) is $730 (million). FCF is expected to grow by 14% next y

ear (1 year from now), by 10% the year after that (2 years from now), and by 5% per year thereafter. Michonne's WACC is estimated at 8%. The estimated Enterprise Value (Value of Operations) for Michonne is $____________(million).
Business
1 answer:
kipiarov [429]2 years ago
8 0

Answer:

enterprise value = $29,024.26 million

Explanation:

first we must calculate the terminal value in year 2:

terminal value = FCF₃ / (WACC - g)

  • FCF₃ = $730 x 1.14 x 1.1 x 1.05 = $961.191
  • WACC = 8%
  • g = 5%

terminal value = $961.191 / (8% - 5%) = $32,039.70

enterprise value = $832.2/1.08 + $915.42/1.08² + $32,039.70/1.08² = $770.556 + $784.825 + $27,468.879 = $29,024.26 million

You might be interested in
The demand for a product is likely to be more​ elastic:
vivado [14]

The demand for a product is likely to be more elastic if there is a presence of more time passes which is letter c. As a demand of a product will likely be affected with the price changes over the period of time. It is because a demand elasticity occurs when there is a presence of change in regards to the demand for goods, such examples are the income of the consumer.

6 0
3 years ago
The best business portfolio is the one that ________.
KengaRu [80]

Answer:

The correct answer to the following question is option B, which is best fits the company's strengths and weaknesses to opportunities in the environment.

Explanation:

The contributing and the collecting of services and the products which are provided by the company. Many of the businesses and the companies will busy in business portfolio analysis as their section of their strategic planning.

Business portfolio is important because it demonstrates your skills and it increases your building trust which means when he or she sees your quality work and it can develop the trust about your business and also it helps in minimizing keep rejection of our services and the product.

6 0
3 years ago
Career skills refer to the complicated tasks performed on the job <br><br> T or F
aksik [14]
The answer is  fales hope i helped
3 0
3 years ago
Read 2 more answers
2 annual dividend on its common stock. The dividend is expected to increase at 6% per year indefinitely. If the required rate of
mixer [17]

Solution:

Given,

R= 16%

g= 8%

Calculate stock value ,

D_{1}=D_{0} x (1+g) ;

D1= 2.16

P0= ( 2.16/0.16 )-0.08

P0= $27

A value stock is a lower price protection exchange that can otherwise be implied by the performance of the company.

5 0
2 years ago
1. Some scholars have argued that the parole system should be abolished. Do you agree or
ExtremeBDS [4]

Answer:

Yes, I agree.

Explanation:

I agree that the parole system should be abolished because there is a risk that the parolee may become a repeat offender. It too involves the risk that he won't, In case, be able to survive on his individual upon freedom, and will fall victim to permanent  homelessness, unemployment, social maladjustment. It may also involve the continuation of involvement by the criminal justice system.

4 0
3 years ago
Other questions:
  • The tax professional can reduce the chances that staff personnel will incur IRS preparerpenalties by adopting a "tone at the top
    12·1 answer
  • You have two options for credit cards. Option one offers a fixed annual percentage rate of 17%. Option two offers you an introdu
    15·2 answers
  • Who is better Mario or Sonic
    7·2 answers
  • What is the meaning of the X​- and Y​-intercepts? A. These points demonstrate an inefficient use of resources. B. These points s
    7·1 answer
  • What is a budget​ constraint?
    9·1 answer
  • Why would those reviewing a business plan want to know the life cycle of a product?
    6·2 answers
  • Services can not be stored, warehoused, or inventoried. Because of this, many hotels and airlines offer deep discounts on rooms
    9·2 answers
  • Boyd Docker engaged in the following activities in establishing his photography studio, SnapShot!:
    6·1 answer
  • This video speeds through over 10 common mistakes people make that leave them open to identity theft. list at least 5 of them he
    5·1 answer
  • How is it possible for nominal GDP to rise but real GDP to fall from one year to the next?
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!