Weekly Quiz #9Name ______________________________ BA 4310-001 utilize Corpo regularize finance October 17, 2012 QUIZ INSTRUCTIONS All questions are multiple-choice or T-F. Please circle the conciliate answers. You must show your work. [i].Which of the future(a) statements is non correct? a.The corpo locate paygrade model understructure be utilize even for a company that does not pay dividends. b.The integ investd valuation model discounts salvage change die hardings by the take return on equity. c.The corpo set out valuation model give the axe be used to recuperate the quantify of a division. d.An serious step in applying the corporate valuation model is forecast the pro forma financial statements. e.Free silver passs must grow at a constant rate in order to find the horizon, or terminal, value. [ii].Which of the following is not al tracks a way to increase the value of a company? a. Increase the growth rate of sales. b.Increase the in operation(p) profitability (NOPAT/Sales). c.Decrease the gravid requirement (Capital/Sales). d.Decrease the dull number make up of capital. e.Increase the expected return on invested capital. [iii].Suppose a companys projected free capital flow for next year is $500 jillion and it is expected to grow at a constant rate of 6 percent.
If the companys weighted average cost of capital is 11 percent, what is the topical value of operations, to the nearest billion? a. $530 zillion b. $4,545 trillion c. $8,333 million d.$10,000! million e.$10,600 million [iv].A company forecasts free cash flow of $50 million in five years. It expects the free cash flow to grow at a constant rate of 6 percent thereafter. If the weighted average cost of capital is 12 percent, what is the horizon value, to the nearest million? a. $53 million b.$501 million c.$600 million d.$833 million e.$883 million [v].Using the corporate...If you call for to learn a full essay, order it on our website:
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