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Consider a company with a free cash flow (FCF) of 837,000, a weighted average cost of capital (WACC) of 0.18 and an expected growth rate of 0.

Consider a company with a free cash flow (FCF) of 837,000, a weighted average cost of capital (WACC) of 0.18 and an expected growth rate of 0.00. What is the company's value using the constant growth stock model?

 



Consider a speculator in a long oil futures contract that controls 1000 barrels of oil. If the speculator signs 8 long positions when the price of oil is 102.7, and the price of oil changes to 38.2, how much money has the speculator made or lost?

Top Answer

FCF = 837000 WACC = 0.18 g = 0 Value of company =... View the full answer

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