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Q7. The forecasted free cash flow to equity is:
A) $420M.
B) $300M.
C) $540M.
Q8. BOX Inc. earned $4.55 per share last year. The firm had capital expenditures of $1.75 per share and depreciation expense of $1.05. BOX Inc. has a target debt ratio of 0.25.
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High-Growth Period |
Transitional Period |
Stable-Growth Period |
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Duration |
2 Years |
5 Years |
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Earnings growth rate |
45% |
Will decline 8% per year to 5% in the stable-growth period |
5% |
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Growth in Capital Expenditures |
30% |
Increases by 8% per year |
Same as Depreciation |
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Growth in Depreciation |
30% |
Increases by 13% per year |
Same as Capital Expenditures |
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Change in Working Capital |
Given Below |
Given Below |
$2.25 per share in Year 8 |
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Shareholder Required Return |
25% |
15% |
10% |
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Yr 0 |
Yr 1 |
Yr 2 |
Yr 3 |
Yr 4 |
Yr 5 |
Yr 6 |
Yr 7 |
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EPS |
4.55 |
6.60 |
9.57 |
13.11 |
16.91 |
20.46 |
23.12 |
24.27 |
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Capital Expenditures |
1.75 |
2.28 |
2.96 |
3.19 |
3.45 |
3.73 |
4.02 |
4.35 |
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Depreciation |
1.05 |
1.37 |
1.77 |
2.01 |
2.27 |
2.56 |
2.89 |
3.27 |
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Change in WC |
0.90 |
1.10 |
1.40 |
1.60 |
1.80 |
2.00 |
2.20 |
2.10 |
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FCFE |
|
|
7.63 |
11.01 |
14.67 |
18.08 |
20.62 |
21.89 |
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In year 1, what is the free cashflow to equity (FCFE) for BOX Inc.?
A) $6.10.
B) $5.09.
C) $3.35.
Q9. On a per share basis for a firm:
- Sales are $10.00.
- Earnings per share (EPS) is $4.00.
- Depreciation is $3.00.
- After-tax interest is $2.40.
- Investment in working capital is $1.50.
- Investment in fixed capital is $2.00.
What is the firm’s expected free cash flow to the firm (FCFF) per share?
A) $2.90.
B) $7.50.
C) $5.90. | 
发表于 2009-3-9 15:31
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