The writer is very fast, professional and responded to the review request fast also. Thank you.
Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly does not pay any dividends, and it has no plans to pay dividends in the near future. A major pension fund is interested in purchasing Brandtly’s stock. The pension fund manager has estimated Brandtly’s free cash flows for the next 4 years as follows: $4 million, $6 million, $10 million, and $14 million. After the fourth year, free cash flow is projected to grow at a constant 3%. Brandtly’s WACC is 9%, the market value of its debt and preferred stock totals $58 million; and it has 21 million shares of common stock outstanding.
What is the present value of the free cash flows projected during the next 4 years? Round your answer to the nearest cent. Do not round your intermediate calculations.
What is the firm’s horizon, or continuing, value? Round your answer to the nearest cent.
What is the firm’s total value today? Round your answer to the nearest cent. Do not round your intermediate calculations.
What is an estimate of Brandtly’s price per share? Round your answer to the nearest cent. Do not round your intermediate calculations.
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more