Papermate Company is a supplier of office products. The company is e grow at a constant rate of 7% over the next 3 years. The company's we average cost of capital is 13%. Assume that Papermate has $10 million securities, $90 million in debt and 20 million shares of common stock. The in year 1 to 3 is given as follows: Year Free Cash Flow ($ million) 1 -$20 2 $30 Calculate Papermate's terminal value. Calculate Papermate's value of operation. What is intrinsic price por share of Panormato .company? 3 $40
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- Dantzler Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFS) during the next 3 years, after which FCF is expected to grow at a constant 7% rate. Dantzler's WACC is 13%. Year 1 2 3 FCF ($ millions) - $12 $20 $47 a. What is Dantzler's horizon, or continuing, value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3.) Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. Do not round intermediate calculations. Round your answer to two decimal places. $ million b. What is the firm's market value today? Assume that Dantzler has zero non-operating assets. Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. Do not round intermediate calculations. Round your answer to two decimal places. $ million c. Suppose Dantzler has $98.50 million of debt and 35 million shares of stock outstanding. What is your estimate of…Dantzler Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFS) during the next 3 years, after which FCF is expected to grow at a constant 7% rate. Dantzler's WACC is 13%. Year ° 1 2 3 FCF (5 millions) $9 $26 $53 a. What is Dantzler's horizon, or continuing, value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3.) Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. Do not round Intermediate calculations. Round your answer to two decimal places. $ million b. What is the firm's market value today? Assume that Dantzler has zero nonoperating assets. Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. Do not round intermediate calculations. Round your answer to two decimal places. $ million c. Suppose Dantzler has $126.80 million of debt and 6 million shares of stock outstanding. What is your estimate of the…Heath and Logan Inc. forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 13%, and the FCFs are expected to continue growing at a 5% rate after Year 3. Assuming that the ROIC is expected to remain constant in Year 3 and beyond, what is the Year 0 value of operations, in millions? Year: 1 2 3 Free cash flow: ($20) $15 $45 (Round your answer to 2 decimal places.)
- Dantzler Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFS) during the next 3 years, after which FCF is expected to grow at a constant 5% rate. Dantzler's WACC is 16%. HIH Year 1 2 3 FCF (S millions) - $15 $33 $59 a. What is Dantzler's horizon, or continuing, value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3.) Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. Do not round intermediate calculations. Round your answer to two decimal places. million b. What is the firm's market value today? Assume that Dantzler has zero nonoperating assets. Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. Do not round intermediate calculations. Round your answer to two decimal places. million c. Suppose Dantzler has $129.60 million of debt and 23 million shares of stock outstanding. What is your estimate of…Dantzler Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFS) during the next 3 years, after which FCF is expected to grow at a constant 6% rate. Dantzler's WACC is 15%. Year FCF ($ millions) $ $ 0 393.56 $ million 1 a. What is Dantzler's horizon, or continuing, value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3.) Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. - $14 million 2 $21 3 b. What is the firm's value today? Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. Do not round your intermediate calculations. $60 c. Suppose Dantzler has $68 million of debt and 28 million shares of stock outstanding. What is your estimate of the current price per share? Round your answer to two decimal places. Write out your…The free cash flows (in millions) shown below are forecast by Simmons Inc. If the weighted average cost of capital is 13% and the free cash flows are expected to continue growing at the same rate after Year 3 as from Year 2 to Year 3, what is the Year 0 value of operations, in millions? Year: 1 Free Cash Flow: -$20, Year 2 Free Cash Flow: $44, Year 3 Free Cah Flow: $47.
- A company forecasts free cash flow of $400 at Year 1 and $600at Year 2; after Year 2, the FCF grow at a constant rate of 5%.The company forecasts the tax savings from interest deductionsas $200 in Year 1, $100 in Year 2; after Year 2, the tax savingsgrow at a constant rate of 5%. The unlevered cost of equityis 9%. What is the horizon value of operations at Year 2?($15,750.0) What is the current unlevered value of operations?($14,128.4) What is the horizon value of the tax shield at Year 2?($2,625.0) What is the current value of the tax shield? ($2,477.1)What is the levered value of operations at Year 0? ($16,605.5)You have been given information on the cash flows for the next three years for AMG inc., a conglomerate. After growing at 10% a year for the next 3 years, the operating income is expected to grow 2.5% a year forever, after year 3. AMG will continue to generate the same return on capital it earned in the first 3 years in perpetuity. Estimate the terminal value at the end of year 3, if the cost of capital is 7.5%. Year 1: EBIT (1-t) = $100 Reinvestment = $80 FCFF = $20 Year 2: EBIT (1-t) = $110 Reinvestment = $88 FCFF = $22 Year 3: EBIT (1-t) = $121 Reinvestment = $96.80 FCFF = $24.20 Choices: A. $496.10 B. $1240.25 C. $1654.49 D. $1984.40 E. $2480.50A company’s most recent free cash flow was $270. The companyexpects to have a FCF in 1 year of $300, which is expected to growat a constant rate of 3% forever. If the WACC is 11%, what is thevalue of operations? ($3,750)
- The free cash flows (in millions) shown below are forecast by Simmons Inc. If the weighted average cost of capital is 13% and the free cash flows are expected to continue growing at the same rate after Year 3 as from Year 2 to Year 3, what is the Year 0 value of operations, in millions? Years 1 2 3 Free cash flow: Year 1- $-20, Year 2- $42, Year 3- $45The free cash flows (in millions) shown below are forecast by Simmons Inc. If the weighted average cost of capital is 13% and the free cash flows are expected to continue growing at the same rate after Year 3 as from Year 2 to Year 3, what is the Year 0 value of operations, in millions? Year: 1 2 3 Free cash flow: −$20 $42 $45 $680 $648 $617 $586 $714Savory Bake Shop's free cash flow today is $1.32 (FCFO = $1.32). Analysts expect the company's free cash flow to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The WACC for this company 9.00%. Savory Bake has $4 million in short-term investments and $14 million in debt and 1 million shares outstanding. What is the best estimate of the stock's current intrinsic price?