need help with 7-1, 7-2, 7-4 & 7-9 only! thank you ...
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need help with 7-1, 7-2, 7-4 & 7-9 only! thank you
ear 2 EMC Corporation's current free cash flow is $400,000 and is expected to grow at a constant rate of 5%. The weighted average cost of capital is WACC mated value of operations. (7-2) Value of Operations: Constant FCF Growth 12%. Calculate EMC's esti- = Current and projected free cash flows for Radell Global Operations are shown here. Growth is expected to be constant after 2021, and the weighted average cost of capital is 11%. What is the horizon (continuing) value at 2022 if growth from 2021 remains (7-3) Horizon Value of Free Cash Flows constant? Actual Projected 2019 2020 2021 2022 Free cash flow $606.820 $667.500 $707.547 $750.000 (millions of dollars) JenBritt Incorporated had a free cash flow (FCF) of $80 million in 2019. The firm projects FCF of $200 million in 2020 and $500 million in 2021. FCF is expected to grow at a con- stant rate of 4% in 2022 and thereafter. The weighted average cost of capital is 9%. What (7-4) Horizon Value of Free Cash Flows A company currently pays a dividend of $2 per share (D company's dividend will grow at a rate of 20% per year for the next 2 years and then at a constant rate of 7% thereafter. The company's stock has a beta of 1.2, the risk-free rate is 7.5%, and the market risk premium is 4%. What is your estimate of the stock's current price? (7-9) $2). It is estimated that the Nonconstant Dividend Growth Valuation
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