This question's due date has already passed. You may post a tutorial, but there's no guarantee that the original asker will purchase the tutorial. But other people might!

Question

# \$10.00FIN 534 HOME WORK HELP(10 QUESTIONS)

• Closed, but you can still post tutorials
• Due on Aug. 30, 2012
• Asked on Aug. 20, 2012 at 05:30:16AM

Rating :No Rating
Tutorials Posted: 9,
Earned: \$0.60

Q:

fin 534 home work help

there are 5 questions from chapter 12 and 5 wquestions from chapter 13

Suppose Leonard, Nixon, & Shull Corporation’s projected free cash flow for next year is \$100,000, and FCF is expected to grow at a constant rate of 6%.  If the company’s weighted average cost of capital is 11%, what is the value of its operations?

Leak Inc. forecasts the free cash flows (in millions) shown below.  If the weighted average cost of capital is 11% and FCF is expected to grow at a rate of 5% after Year 2, what is the Year 0 value of operations, in millions?  Assume that the ROIC is expected to remain constant in Year 2 and beyond (and do not make any half-year adjustments).

Year:                   1           2

Free cash flow:       -\$50        \$100

Based on the corporate valuation model, the value of a company’s operations is \$1,200 million.  The company’s balance sheet shows \$80 million in accounts receivable, \$60 million in inventory, and \$100 million in short-term investments that are unrelated to operations.  The balance sheet also shows \$90 million in accounts payable, \$120 million in notes payable, \$300 million in long-term debt, \$50 million in preferred stock, \$180 million in retained earnings, and \$800 million in total

Available Tutorials to this Question

\$7.00
Here you go A++ SOLUTION SOLVED IN EXCEL! You can contact me for any questions!!
• This tutorial hasn't been purchased yet.
• Posted on Aug 20, 2012 at 4:43:21PM
Posted by :

Rating (179):A+