d Las Vega XV° Class 8 Q ×VD D Gartner l × , G hd MAN 620 × ucf edu/courses/1280
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d Las Vega XV° Class 8 Q ×VD D Gartner l × , G hd MAN 620 × ucf edu/courses/1280620/quizzes/1687282 Based on the corporate valuation model, Bernile Inc's value of operations is $750 million Its balance sheet shows $50 million of short-term investments that are unrelated to operations $100 million of accounts payable, 100 million of notes payable $200 million of long-term debt $40 million of common stock (par plus paid-in-capital)l and $160 million of retained earnings What is the best estimate for the firms value of equity, in millions? 429 $451 $475 $500 5525 Question 11 Suppose Yon Sun Corporation's free cash flow during the just-ended year It-O) was $100 million expected to grow at a constant rate of 5% in the future. 15%, what is the firm's value of operations, in millions? If the weighted average cost of capital is DOLLExplanation / Answer
Value of the firm=Value of operations+short term investments=750+50=800
Value of debt=notes payable+long term debt=200+100=300
Value of equity=Value of firm-Value of debt=800-300=500 million
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