Question

Carmax Inc. has generates annual free cash flow of $2,096 million. The firm current has $1,823 million in long and short-term debt, $259 million in marketable securities, and the current market value of preferred stock is $767 million. Carmax expects their cash flow to grow 25% and 10% during the next two years. The fi rm then anticipates a constant FCF growth rate of 9%. If the fi rm has a WACC of 18% and 364 million shares outstanding, what is the intrinsic value of equity per share?

Answer #1

Extensive Enterprise Inc. is expected to generate a free cash
flow (FCF) of $7,295.00 million this year (FCF1FCF1 = $7,295.00
million), and the FCF is expected to grow at a rate of 26.20% over
the following two years (FCF2FCF2 and FCF3FCF3). After the third
year, however, the FCF is expected to grow at a constant rate of
4.26% per year, which will last forever (FCF4FCF4). If Extensive
Enterprise Inc.’s weighted average cost of capital (WACC) is
12.78%, what is the...

Noe Technologies’ stock current free cash flows is expected to
be $25.00 million, and it is expected to grow at a constant rate of
5.0% a year thereafter. The company’s WACC is 10.0%, it has $125.0
million of long-term debt and $25.0 million of marketable
securities, and there are 10.0 million shares of common stock
outstanding. What is the firm's intrinsic value per share of common
stock?

Extensive Enterprise Inc. is expected to generate a free cash
flow (FCF) of $2,450.00 million this year (FCF₁ = $2,450.00
million), and the FCF is expected to grow at a rate of 21.40% over
the following two years (FCF₂ and FCF₃). After the third year,
however, the FCF is expected to grow at a constant rate of 2.82%
per year, which will last forever (FCF₄). Assume the firm has no
nonoperating assets. If Extensive Enterprise Inc.’s weighted
average cost of...

Beishan Technologies' end-of-year free cash flow (FCF1) is expected
to be $70 million, and free cash flow is expected to grow at a
constant growth rate of 5% a year in the future. The firm's WACC is
10%, and it has $600 million of long-term debt and preferred stock.
If the firm has 34 million shares of common stock outstanding, what
is the estimated intrinsic value per share of their common stock?
Your answer should be between 14.20 and 68.54

Praxis Corp. is expected to generate a free cash flow (FCF) of
$7,890.00 million this year ( FCF1 = $7,890.00 million), and the
FCF is expected to grow at a rate of 20.20% over the following two
years ( FCF2 and FCF3 ). After the third year, however, the FCF is
expected to grow at a constant rate of 2.46% per year, which will
last forever ( FCF4 ). If Praxis Corp.’s weighted average cost of
capital (WACC) is 7.38%,...

Al Safi is a Saudi COMPANY has several business lines. The
current free cash flow of the company was SR 30 Million but it is
expected to grow at 5% each year. The company’ cost of equity is
10%. There is a marketable financial instruments/securities worth
SR 80 million, and the debt is SR 150 million, and the company has
10 million shares outstanding, 40 preferred stock, what is the
stock value?

1. 123 Warehousing is expected to generate a free cash flow
(FCF) of $5,730.00 million this year (FCF₁ = $5,730.00 million),
and the FCF is expected to grow at a rate of 25.00% over the
following two years (FCF₂ and FCF₃). After the third year, however,
the FCF is expected to grow at a constant rate of 3.90% per year,
which will last forever (FCF₄). Assume the firm has no nonoperating
assets. If 123 Warehousing’s weighted average cost of capital...

1.Smith and T Co. is expected to generate a free cash flow (FCF)
of $5,500.00 million this year (FCF₁ = $5,500.00 million), and the
FCF is expected to grow at a rate of 20.20% over the following two
years (FCF₂ and FCF₃). After the third year, however, the FCF is
expected to grow at a constant rate of 2.46% per year, which will
last forever (FCF₄). Assume the firm has no nonoperating assets. If
Smith and T Co.’s weighted average...

Ankh-Sto Associates Co. is expected to generate a free cash flow
(FCF) of $11,880.00 million this year (FCF₁ = $11,880.00 million),
and the FCF is expected to grow at a rate of 19.00% over the
following two years (FCF₂ and FCF₃). After the third year, however,
the FCF is expected to grow at a constant rate of 2.10% per year,
which will last forever (FCF₄). Assume the firm has no nonoperating
assets. If Ankh-Sto Associates Co.’s weighted average cost of...

Globo-Chem Co. is expected to generate a free cash flow (FCF) of
$9,980.00 million this year (FCF₁ = $9,980.00 million), and the FCF
is expected to grow at a rate of 20.20% over the following two
years (FCF₂ and FCF₃). After the third year, however, the FCF is
expected to grow at a constant rate of 2.46% per year, which will
last forever (FCF₄). Assume the firm has no nonoperating assets. If
Globo-Chem Co.’s weighted average cost of capital (WACC)...

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