Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. kinkead inc. forecasts that its free cash flow in

Kinkead Inc. forecasts that its free cash flow in the coming year, i.e., at t...

90.2K

Verified Solution

Question

Finance

image

Kinkead Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be $7 million, at t = 2 will be $8.5 million, and at t = 3 will be $9.9 million. After Year 3, FCF is expected to grow at a constant rate of 5% forever. The firm also has $5 million in ST Investments and $120 million in debt. If the weighted average cost of capital is 12%, what is the total value of the company, in millions

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

The table below shows the closing monthly stock prices for IBM and Amazon. Calculate the exponential...

Finance
1.2K views

Carland, Inc., has a project available with the following cash flows. If the required return for...

Accounting
1.2K views

On January 1, 2016 Venti Corporation exchanged $344,000 cash for a 90% interest in Krunk Corporation’s...

Biology
1.2K views

The crystallins which ultimately gave rise to the lens of your eye are derived from...

Biology
1.2K views

step in this process is called TRANSCRIPTION where a coding region of DNA is converted...

Calculus
1.2K views

13 of 23 1 point Attempt equivalent equation using 3 y 4 25

Calculus
1.2K views

Let g(x) = 9.Determine the derivative of g.Determine the slope of g at X =...

Accounting
1.2K views

Human Software Corp. has successfully developed a new spreadsheet program. To produce and market the...

Accounting
1.2K views

Beginning inventory 10 units @ $10 per unit First purchase 35 units @ $11 per...

Accounting
1.2K views

For the year ended December 31,...

Accounting
1.2K views

Reference Data table Reference Data table...

Accounting
1.2K views

Selling and administrative expenses are considered to be