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Q27. What is the expected growth rate in FCFF that Carson must have used to generate his valuation of $1.08 billion?
A) 7%.
B) 12%.
C) 5%.
Q28. If Carson had estimated FCFE under the assumption that Overhaul Trucking maintains a target debt-to-asset ratio of 36 percent for new investments in fixed and working capital, what would be his forecast of 2006 FCFE?
A) $9.6 million.
B) $26.5 million.
C) $16.9 million.
Q29. Regarding the statements made by Carson and Eckhardt about the value of Overhaul in the high-growth scenario:
A) only one is correct.
B) both are correct.
C) both are incorrect.
Q30. Industrial Light currently has:
- Expected free cash flow to the firm in one year = $4.0 million.
- Cost of equity = 12%.
- Weighted average cost of capital = 10%.
- Total debt = $30.0 million.
- Long-term expected growth rate = 5%.
What is the value of equity?
A) $50,000,000.
B) $80,000,000.
C) $44,440,000.
Q31. A firm has projected free cash flow to equity next year of $1.25 per share, $1.55 in two years, and a terminal value of $90.00 two years from now, as well. Given the firm’s cost of equity of 12%, a weighted average cost of capital of 14%, and total outstanding debt of $30.00 per share, what is the current value of equity?
A) $74.10.
B) $41.54.
C) $71.74. | 
发表于 2009-3-9 16:14
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