2009-09-21_204441_Net_Present_Value_FCF

2009-09-21_204441_Net_Present_Value_FCF - 2,120,000.00 3...

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1 Value of Operations=Present value of the expected free cash flows Year Yearly earnings Present value 1 (50.00) (45.05) 2 100.00 81.16 2 1,750.00 1,420.34 Net Present value 1,456.46 Horizon value at year 2= CF(Yr3)/(WACC-G) Horizon value at year 2 = 100(1.05)/(.11-.05) 1,750.00 2 Value of Operations=Present value of the expected free cash flows Year Yearly earnings Present value 1 100,000.00 90,090.09 1 2,120,000.00 1,909,909.91 - Net Present value 2,000,000.00 Horizon value at year 1= CF(Yr2)/(WACC-G)
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Unformatted text preview: 2,120,000.00 3 Value of Operations=Present value of the expected free cash flows Year FCF(yr 5) = $50 mn growth rate = 6% WACC=12% Horizon value at year 5= CF(Yr6)/(WACC-G) 883.33 4 Value of the corporation = value of operations + value of non-operating assets +marketable securities Value of the corporation = 800.00 Value of Equity= Value of Corp - Long term debt-Note payable Value of Equity= 500.00...
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