In the most recent fiscal year, a company reported net income of $850 million after...
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In the most recent fiscal year, a company reported net income of $ million after incurring $ million in interest expenses. The corporate tax rate was That year, it reported a $ million depreciation and $ billion in capital spending. The company also had $ billion in debt outstanding, was rated AA with an percent yield to maturity and was trading at par. The stock's beta is and there were million outstanding shares trading at $ each with a book value of $ billion. Union Pacific paid out of its earnings as dividends, and working capital requirements are minimal. The Treasury bond rate is and market risk premium is a Estimate the FCFF for the most recent financial year. Showcalculations of each of the following: EBIT FCFFb Estimate the value of the firm now.Show calculations of each of the following: Reinvestment rate ROC Growth rate Cost of equity Cost of capital Value of the firmc. Estimate the value of equity.d Estimate the value per share.
In the most recent fiscal year, a company reported net income of $ million after incurring $ million in interest expenses. The corporate tax rate was That year, it reported a $ million depreciation and $ billion in capital spending. The company also had $ billion in debt outstanding, was rated AA with an percent yield to maturity and was trading at par. The stock's beta is and there were million outstanding shares trading at $ each with a book value of $ billion. Union Pacific paid out of its earnings as dividends, and working capital requirements are minimal. The Treasury bond rate is and market risk premium is a Estimate the FCFF for the most recent financial year. Showcalculations of each of the following: EBIT FCFFb Estimate the value of the firm now.Show calculations of each of the following: Reinvestment rate ROC Growth rate Cost of equity Cost of capital Value of the firmc. Estimate the value of equity.d Estimate the value per share.
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