subject
Business, 25.12.2019 23:31 hardwick744

Allied biscuit co. is expected to generate a free cash flow (fcf) of $8,140.00 million this year (fcf₁ = $8,140.00 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 allied biscuit co.’s weighted average cost of capital (wacc) is 6.30%, what is the current total firm value of allied biscuit co.? (note: round all intermediate calculations to two decimal places.)

a. $46,307.12 million
b. $548,735.93 million
c. $464,594.48 million
d. $557,513.38 million

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 16:00
Corey is trying to save money to buy a new tv. he invests $800 into an account paying 6.5% simple interest. for how long must he save if the tv costs $950? a. 2 years b. 3 years c. 4 years d. 5 years
Answers: 1
question
Business, 21.06.2019 19:30
Which p shifts to consumer in the four cs of the alternate marketing mix? a) promotion b) product c) place d) price
Answers: 3
question
Business, 22.06.2019 17:00
Cadbury has a chocolate factory in dunedin, new zealand. for easter, it makes two kinds of “easter eggs”: milk chocolate and dark chocolate. it cycles between producing milk and dark chocolate eggs. the table below provides data on these two products. demand (lbs per hour) milk: 500 dark: 200 switchover time (minutes) milk: 60 dark: 30 production rate per hour milk: 800 dark: 800 for example, it takes 30 minutes to switch production from milk to dark chocolate. demand for milk chocolate is higher (500lbs per hour versus 200 lbs per hour), but the line produces them at the same rate (when operating): 800 lbs per hour. a : suppose cadbury produces 2,334lbs milk chocolate and 1,652 lbs of dark chocolate in each cycle. what would be the maximum inventory (lbs) of milk chocolate? b : how many lbs of milk and dark chocolate should be produced with each cycle so as to satisfy demand while minimizing inventory?
Answers: 2
question
Business, 22.06.2019 19:00
12. to produce a textured purée, you would use a/an a. food processor. b. wide-mesh sieve. c. immersion blender d. food mill.
Answers: 1
You know the right answer?
Allied biscuit co. is expected to generate a free cash flow (fcf) of $8,140.00 million this year (fc...
Questions
question
Mathematics, 28.09.2021 21:30
question
Mathematics, 28.09.2021 21:30
question
Mathematics, 28.09.2021 21:30
question
Mathematics, 28.09.2021 21:30
Questions on the website: 13722367