Corporate valuation Dollars/shares in millions FCF FCF2 -$19.00 $26.00 FCF3 $35.00 Constant growth rate, gn 8.00% WACC 11.00% Market value of debt $181.00 Common shares outstanding 31 0 1 2 3 4 FCFS $2.00 -$19.00 $26.00 $35.00 Horizon value Total FCFS PV of FCFS to investors Firm value today Market value of equity, MVEuity Price per share, Pọ Formulas 0 1 3 4 FCFS $35.00 -$19.00 $26.00 #N/A Horizon value #N/A #N/A. #N/A #N/A Total FCFS #N/A PV of FCFS to investors #N/A #N/A Firm value today #N/A Market value of equity, MVEquity #N/A Price per share, Po #N/A.

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Dantzler Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 3 years, after which FCF is expected to grow at a constant 8% rate. Dantzler's WACC is 10%. Year 0 1 2 3 ....... ....... ....... ....... ....... ....... ....... .......   ....... ....... ....... ....... ....... ....... ....... ...... FCF ($ millions)   - $10 $22 $58 What is Dantzler's horizon, or continuing, value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3.) Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. Do not round intermediate calculations. Round your answer to two decimal places.$    million What is the firm's market value today? Assume that Dantzler has zero nonoperating assets. Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. Do not round intermediate calculations. Round your answer to two…

XYZ plans to open a new store with the following forecasted free cash flows. If the interest rate is 8% and cash flows are expected to grow by 2% a year starting year 4, calculate project’s NPV   0 1 2 3 CF, mil. -50 35 55 85     -$1.5 million     $1,386.9 million     $1,589.1 million     $1,244.1 million

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Ryan Enterprises forecasts the free cash flows (in millions) shown below. Assume the firm has zero non-operating assets. The weighted average cost of capital is 13.0%, and the FCFs are expected to continue growing at a 6.0% rate after Year 3. What is the firm’s total corporate value (in millions)? Do not round intermediate calculations. Year 1 2 3 FCF -$30.0 $10.0 $50.0   a. $510.97 million     b. $610.96 million     c. $506.02 million     d. $540.67 million     e. $573.18 million

Kinkead Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be −$10 million, but its FCF at t = 2 will be $20 million. After Year 2, FCF is expected to grow at a constant rate of 4% forever. If the weighted average cost of capital is 14%, what is the firm's value of operations, in millions?   a. $167     b. $158     c. $193     d. $175     e. $18

2. Mathias Company estimated that it has a 20% probability of receiving $240,000 one year from now, a 30% probability of receiving $240,000 two years from now, and a 50% probability of receiving $240,000 three years from now. Required: Using the FASB's concept of "expected cash flows," calculate the present value of the expected cash flows assuming a 10% interest rate compounded annually

A firm's current profits are $700,000. These profits are expected to grow indefinitely at a constant annual rate of 3 percent. If the firm's opportunity cost of funds is 5 percent, determine the value of the firm: Instructions: Enter your responses rounded to two decimal places. a. The instant before it pays out current profits as dividends. million b. The instant after it pays out current profits as dividends. million