The free cash flow can be calculated as below:
Revenue 12000000
Less: Expense (8000000)
Less: Depreciation (1500000)
Earnings Before Tax 2500000
Less Tax (750000)
Earnings after tax 1750000
Add Depreciation 1500000
Total Cash Earnings 3250000
Less: Change in Working Capital (500000)
Less : Purchase of Asset (700000)
Free Cash Flow 2050000
Thus Free Cash Flow can be calculated as above.
Answer: see attachment
Explanation:
Attached below is a table prepared in answer to the question
Answer:
Consider the following calculation
Explanation:
Year 1 dividend = 2.85 (1 + 30%) = 3.705
Year 2 dividend = 3.705 (1 + 30%) = 4.8165
Year 3 dividend = 4.8165 (1 + 30%) = 6.26145
Year 4 dividend = 6.26145 + 2.4 = 8.66145
Year 5 dividend = 8.66145 (1 + 2%) = 8.834679
Value at year 4 = D5 / required rate - growth rate
Value at year 4 = 8.834679 / 0.108 - 0.02
Value at year 4 = 8.834679 / 0.088
Value at year 4 = 100.39408
Share price = Present value of cash inflows
Share price = 3.705 / (1 + 0.108)1 + 4.8165 / (1 + 0.108)2 + 6.26145 / (1 + 0.108)3 + 8.66145 / (1 + 0.108)4 + 100.39408 / (1 + 0.108)4
Share price = $84.23
<span>Around twelve thousand years ago, in what we now call the middle east, people began to domesticate grain, a process that slowly spread around the world over the next six to seven thousand years. in 1984, 8 percent of u.s. households had a computer; by 2008, that number was estimated to be above 70 percent. "Both are examples of social changes, occurring at different in computer."</span>
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