Fall%2008%20Exam%201

Fall%2008%20Exam%201 - Free Cash Flow 2011 Horizon Value 3...

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Exam 1 Mgt 426 Fall 2008 Instructions: Program the shaded cells below and submit via WebCT Assumptions current date year-end 2008 before tax cost of debt 8% equity beta 1.15 shares outstanding in millions 3.00 t bill rate 4.00% market risk premium 5.50% tax rate 35% target debt to equity ratio 0.5 Perpetual growth rate past 2011 2% year-end Earnings Before Interest and Taxes Taxes Earnings Before Interest and After Taxes Depreciation Investment in plant and working capital
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Unformatted text preview: Free Cash Flow 2011 Horizon Value 3% Total Cash to be Discounted Cost of Equity 92.0% WACC Value of Firm ($mm) Value of Debt ($mm) 50.00 Value of Equity ($mm) Value of Equity per Share Constant Growth Valuation Exercise Projected in $mm 2009 2010 2011 20.00 25.00 30.00 7.00 8.75 10.50 13.00 16.25 19.50 2.00 2.20 2.40 3.00 3.10 3.20 18.00 21.55 25.10 717.14...
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This note was uploaded on 10/26/2008 for the course MGMT 426 taught by Professor Schatzberg during the Fall '08 term at New Mexico.

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Fall%2008%20Exam%201 - Free Cash Flow 2011 Horizon Value 3...

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