Union pacific railroad reported net income of $770 million in 1993, after interest expenses of $320 million. (the corporate tax rate was 36%.) it reported depreciation of $960 million in that year, and capital spending was $1.2 billion. the firm also had $4 billion in debt outstanding on the books, rated aa (carrying a yield to maturity of 8%), trading at par (up from $3.8 billion at the end of 1992). the beta of the stock is 1.05, and there were 200 million shares outstanding (trading at $60 per share), with a book value of $5 billion. union pacific paid 40% of its earnings as dividends and working capital requirements are negligible. (the treasury bond rate is 7%.)a. estimate the free cash flow to the firm in 1993.b. estimate the value of the firm at the end of 1993.c. estimate the value of equity at the end of 1993, and the value per share, using the dcf approach.

Answer

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Explanation  

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whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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