CORPORATE VALUATION Brandtly Industries invests a large sum of money in R&D; as a result, it retains...

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CORPORATE VALUATION
Brandtly Industries invests a large sum of money in R&D; asa result, it retains and reinvests all of its earnings. In otherwords, Brandtly does not pay any dividends, and it has no plans topay dividends in the near future. A major pension fund isinterested in purchasing Brandtly's stock. The pension fund managerhas estimated Brandtly's free cash flows for the next 4 years asfollows: $2 million, $6 million, $11 million, and $15 million.After the fourth year, free cash flow is projected to grow at aconstant 8%. Brandtly's WACC is 10%, the market value of its debtand preferred stock totals $58 million; and it has 17 millionshares of common stock outstanding.
Write out your answers completely. For example, 13 millionshould be entered as 13,000,000.
What is the present value of the free cash flows projectedduring the next 4 years? Round your answer to the nearest cent. Donot round your intermediate calculations.

$

What is the firm's horizon, or continuing, value? Round youranswer to the nearest cent.

$

What is the firm's total value today? Round your answer to thenearest cent. Do not round your intermediate calculations.

$

What is an estimate of Brandtly's price per share? Round youranswer to the nearest cent. Do not round your intermediatecalculations.

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CORPORATE VALUATIONBrandtly Industries invests a large sum of money in R&D; asa result, it retains and reinvests all of its earnings. In otherwords, Brandtly does not pay any dividends, and it has no plans topay dividends in the near future. A major pension fund isinterested in purchasing Brandtly's stock. The pension fund managerhas estimated Brandtly's free cash flows for the next 4 years asfollows: $2 million, $6 million, $11 million, and $15 million.After the fourth year, free cash flow is projected to grow at aconstant 8%. Brandtly's WACC is 10%, the market value of its debtand preferred stock totals $58 million; and it has 17 millionshares of common stock outstanding.Write out your answers completely. For example, 13 millionshould be entered as 13,000,000.What is the present value of the free cash flows projectedduring the next 4 years? Round your answer to the nearest cent. Donot round your intermediate calculations.$What is the firm's horizon, or continuing, value? Round youranswer to the nearest cent.$What is the firm's total value today? Round your answer to thenearest cent. Do not round your intermediate calculations.$What is an estimate of Brandtly's price per share? Round youranswer to the nearest cent. Do not round your intermediatecalculations.