- +1-530-264-8006
- info@tutorsglobe.com

Current value of operations for dozier

**Task1**. Dozier Corporation is a rapid growing supplier of office products. Analysts project the following free cash flows (FCFs) throughout the upcoming 3 years, after which FCF is anticipated to grow at a stable 8% rate. Dozier's weighted average cost of capital is WACC = 13%.

Year

1 2 3

Free cash flow ($ millions) -$20 $30 $40

**Question1**. What is Dozier's horizon, or terminal, value? (Hint: Find all the value of all free cash flows beyond Year three discounted back to Year three.)

**Question2**. What is current value of operations for Dozier?

**Question3**. Assume that Dozier has $10 million in marketable securities, $100 million in debt, and 10 million shares of stock. What is intrinsic price per share?

18,76,764

Questions

Asked

21,311

Experts

9,67,568

Questions

Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment2015 © Tutors Globe. All rights reserved.

## Q : Determining variable overheard variance

Here the motto is to be determining the variable overheard variance of company. Suppose that the risk-free rate is 3% and the expected return on market is 11%. What is the required rate of return on a stock with the beta of 2?