Operating Cash Flow Net Working Capital CAPEX Debt Shares Outstanding Global Exports Inc. ($000s) Last Year 93,435 325,000 22,876 450,255 50,000 Next Year 103,462 344,000 28,975 485,850 50,000 sume that free cash flow is paid at the end of each year and we are at the beginning of next year. Last year's values are

Operating Cash Flow Net Working Capital CAPEX Debt Shares Outstanding Global Exports Inc. ($000s) Last Year 93,435 325,000 22,876 450,255 50,000 Next Year 103,462 344,000 28,975 485,850 50,000 sume that free cash flow is paid at the end of each year and we are at the beginning of next year. Last year's values are

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter3: International Financial Markets

Section: Chapter Questions

Problem 3BIC

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Brook Corporation’s free cash flow for the current year (FCF0) was $3.00 million. Its investors require a 13% rate of return on (WACC = 13%). What is the estimated value of operations if investors expect FCF to grow at a constant annual rate of (1) −5%, (2) 0%, (3) 5%, or (4) 10%?
Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The discount factor for year 1 is 0.89 and for year 2 is 0.80. The NPV is a. 0 b. 6,800 c. 1,400 d. (4,000)
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