Given the following:A firms projected free cash flows of2021 $20 million2022 $30 million2023 $50 millionAfter 2023, the growth rate will be steady at 4%Cost of capital (WACC) = 8%Value of marketable securities = $20 millionValue of long term debt = $12 million10 million shares outstanding calculate: a. the horizon value b. the Value of operations c. the stock price SHOW WORK FOR CREDIT:

a) $1,300 million

b) $1,115.91 million

c) $112.39

Explanation:

To find horizon value, value of operations, and the stock price we need to go through calculations using appropriate formulas.

DATA

Free CashFlow, 2021 = $20 million

Free CashFlow,, 2022 = $30 million

Free CashFlow,, 2023 = $50 million

Growth Rate = 4%

Cost of Capital = 8%

Value of Long-term Debt = 12 million

Value of marketable securities = $20 million

outstanding shares = 10 million

Working

Free CashFlow,, 2024 = Free CashFlow,, 2023 * (1 + Growth Rate)

Free CashFlow,, 2024 = $50 million * 1.04

Free CashFlow,, 2024 = $52 million

Horizon Value

Horizon Value = Free CashFlow, 2024 / (Cost of Capital - Growth Rate)

Horizon Value = $52 million / (0.08 - 0.04)

Horizon Value = $52 million / 0.04

Horizon Value = $1,300 million

Value of operation

Value of Operations = $20 million / 1.08 + $30 million / 1.08^2 + $50 million / 1.08^3 + $1,300 million / 1.08^3

Value of Operations = $1,115.91 million

Stock price

To find the price per share we need to find the value of equity first

Value of Equity = Value of Operations - Value of Long-term Debt + Value of Marketable Securities

Value of Equity = $1,115.91 million - $12.00 million + $20.00 million

Value of Equity = $1,123.91 million

Price per share = Value of Equity / Number of Shares

Price per share = $1,123.91 million / 10 million

Price per share = $112.39

the first successful, urban blues recording, selling more than 75,000 copies, was made in year 1920.

mamie smith recorded the first commercially successful example of the urban blues,   with the recording of “crazy blues”."crazy blues" was recorded on august 10, 1920, in new york city. within a month of the release of “crazy blues” it had sold 75,000 copies.

answer; dogs;