Questions of equity and enterprise value evaluation model??
Barrett Industrial and R & D investment and a lot of money to keep it all Reinvest the results of its earninings. In other words, tell Barret to pay dividends, and Plans are paying dividends in the near future. Key benefits Funds are interested in buying shares of Barrett. As pension fund managers Barrett next 4 years as the free cash flow is estimated Follows: $ 30,006 millions, 15 million U.S. dollars and 10 million U.S. dollars. 4th and 1 years, free cash flow to grow a steady 7% Is expected. Barrett WACC 12% U.S. dollars, the total debt and preferred stock, and Summer stock is 10 million shares outstanding. How to answer the expected free cash Flow, net present value is the next 4 years? Or any company What is the terminal value? C. The total value of any company that is today? What is the price per share estimates of di Berrett?
Reply 3/1.12 + 6 / (1.12 ^ 2) + 10 / (1.12 ^ 3) + 15 / (1.12 ^ 4 years 4) = 24.11 B group of the terminal value (15 x 1.07) / (0.12 – 0.07) = 321 C 24.11 + 321 / (1.12 ^ 4) = 228.11 L (228.11-60) / 100,000 = 16.81
WST: 9.6 Adv FM Core Model – Debt Sweep Starting Point