Calculate a value of operations b total value of assets c


Berkshire Corp does not pay a divident. Its current free cash flow is expected to grow at a rate of 5% per year from its present level of $40 million. Berkshire's weighted average cost of capital is 12%. It has marketable securities (short term investments) of $100 million, preferred stock of $50 million, short term debt of $150 million, long term debt of $100 million, and $10 million shares of common stock outstanding. Calculate a, value of operations, b total value of assets, c total value of equity (market capitalization) and d per share value of equity (intrinsic value per share)

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Financial Management: Calculate a value of operations b total value of assets c
Reference No:- TGS02664165

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