Mathematics, 28.08.2020 20:01 taylorlindsey9329

Phoenix Corporation for fiscal 2015 had Total Cash Flow from Operations of $6,917.2m, which was after interest expense of $926m. Depreciation https://myuni. adelaide. edu. au/courses/32822/quizzes/30541 5/10 10/27/2018 Test1: Corporate Investment & Strategy III Question 9 1 / 1 pts California Real Estate, Inc., expects to earn $65 million per year in perpetuity if it does not undertake any new projects. The firm has an opportunity to invest $12 million today and $4 million in one year in real estate. The new investment will generate annual earnings of $10 million in perpetuity, beginning two years from today. The firm has 10 million shares of common stock outstanding, and the required rate of return on the stock is 10 percent. Land investments are not depreciable. Ignore taxes. What is the per-share stock price if the firm undertakes the investment? 72.53 65.00 87.63 76.35 71.34 expense was $1,783m and Capital Expenditure was $2,135.7m. Phoenix paid a dividend of $1,823.4m. What was the Levered Free Cash Flow after the dividend?Phoenix Corporation for fiscal 2015 had Total Cash Flow from Operations of $6,917.2m, which was after interest expense of $926m. Depreciation https://myuni. adelaide. edu. au/courses/32822/quizzes/30541
5/10
10/27/2018 Test1: Corporate Investment & Strategy III
Question 9
1 / 1 pts
California Real Estate, Inc., expects to earn $65 million per year in perpetuity if it does not undertake any new projects. The firm has an opportunity to invest $12 million today and $4 million in one year in real estate. The new investment will generate annual earnings of $10 million in perpetuity, beginning two years from today. The firm has 10 million shares of common stock outstanding, and the required rate of return on the stock is 10 percent. Land investments are not depreciable. Ignore taxes. What is the per-share stock price if the firm undertakes the investment?
72.53 65.00 87.63 76.35 71.34

expense was $1,783m and Capital Expenditure was $2,135.7m. Phoenix paid a dividend of $1,823.4m. What was the Levered Free Cash Flow after the dividend?

Answers: 1

Show answers

Answers

Answer from: goldenarrow

Question 1

Levered Free Cash Flow after dividend $2,958.1

Question 2.

2a.$65

2b.$75,272,727.27

2c.$72.53

Step-by-step explanation:

QUESTION 1

Calculation for the Levered Free Cash Flow after the dividend

Using this formula

Levered Free Cash Flow after dividend =Cash Flow from Operations-(Capital Expenditure+ Dividend amount)

Let plug in the formula

Levered Free Cash Flow after dividend =$6,917.2m-( $2,135.7m+$1,823.4m)

Levered Free Cash Flow after dividend =$6,917.2m-$3,959.1m

Levered Free Cash Flow after dividend =$2,958.1

Therefore the Levered Free Cash Flow after dividend will be $2,958.1

QUESTION 2

2a. Calculation for the price of a share of stock in a situation where the firm does not undertake the new investment

The first step will be to find the Cash value of the company using this formula

Cash value of company =Amount expect to earn in perpetuity/Return on stock percentage

Let plug in the formula

Cash value of company = $65,000,000 / .10

Cash value of company = $650,000,000

Now let find the share price using this formula

Share price=Cash value of company/Shares of common stock outstanding

Let plug in the formula

Share price = $650,000,000 / $10,000,000

Share price = $65

b. Calculation for the value of the investment

First step is to find the Net present value of the growth opportunities (NPVGO ) using this formula

NPVGO = C0+ C1/ (1 +R) + (C2/R) / (1 +R)

Let plug in the formula

NPVGO = −$12,000,000 − 4,000,000 / (1 + .10) + ($10,000,000 / .10) / (1 + .10)

NPVGO =$75,272,727.27

c. Calculation for the per-share stock price if the firm undertakes the investment

The first step is to find the NPVGO per share using this formula

NPVGO per share =NPVGO/Shares of common stock outstanding

Let plug in the formula

NPVGO per share= $75,272,727.27 / $10,000,000

NPVGO per share = $7.53

Now let calculate for the per-share stock price using this formula

Per share stock price = Cash value price + NPVGO per share

Per share stock price = $65 + $7.53

Per share stock price=$72.53

Answer from: Quest

5x+2x=49

7x=49

x=7. 35 apples

Answer from: Quest

It is the top one. the answer is -7. that is smallest

Other questions on the subject: Mathematics

Mathematics, 21.06.2019 14:00, ctyrector

Carson has only $20 bills and $10 bill in her wallet. the total value of the bills is $50. she has 1 more $20 bill than $10 bills. how many each kind of bill does carson have? a. one $20 and two $10 bills b. two $20 bills and one $10 bill c. one $20 bills and three $10 bills d. two $20 bills and two $10 bills

Answers: 2

continue

Mathematics, 21.06.2019 17:30, 21villalobosjabez

Trent wants to buy 2 packs of trading cards for 3 dollars each. the trading card packs that trent normally buys tend to come in packs of 6, 10, 12, or 15 cards. after selecting 2 packs, trent found that the first pack of cards cost 25 cents per card, and the second pack cost 30 cents per card. trent uses this information to write the equations below in order to compare c, the number of cards in each pack.

Answers: 2

continue

Mathematics, 21.06.2019 17:40, cifjdhhfdu

Aregular hexagon has sides of 2 feet. what is the area of the hexagon? 12 ft2 12 ft2 24 ft2 6 ft2

Answers: 2

continue

Mathematics, 21.06.2019 19:00, joshdunsbuns143

Apool measures 12.3 feet by 16.6 feet. if the longer wall of the pool has a diagonal of 17.8 feet, what is the volume of the pool? (round to nearest tenth)

Answers: 1

continue

You know the right answer?

Phoenix Corporation for fiscal 2015 had Total Cash Flow from Operations of $6,917.2m, which was afte...