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  1. business
  2. accounting
  3. assume the following about corporation x: 15,000 s

Assume the following about corporation X: 15,000 shares outstanding. W.A.C.C. / Required Rate = 8%....

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Accounting

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Assume the following about corporation X: 15,000 shares outstanding. W.A.C.C. / Required Rate = 8%. $120,000 in debt. Growth rate estimated at 5%. Current bond price of $1150. Next expected dividend = $3.00. After tax cash flows of: Year 1 = $5,000, Yr. 2 = $15,000, Yr. 3 = $15,000, Yr. 4 = $25,000 after year 4 assume Corporation's X's after cash flows will increase with the forecasted growth rate. Using the Discounted Cash Flow (DCF) model, what is the present value of the first 4 years' cash flows? (round to the nearest dollar)

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