What is the approximate present value of a company with the following stream of free cash flows (FCFs). The weighted average of cost of capital (WACC) is 8% and the company will not change its capital structure. The FCFs are: Year 1 = $8 million The cash flow from Year 1 is expected to grow by 10% in each of Years 2 and Year 3. After that, the cash flow is expected to grow at 5% forever.   Question 5 options:   a)  $290 million   b)  $280 million   c)  $270 million   d)  $310 million

You are evaluating Adidas and expect it to generate the following free cash flows over your forecast​ horizon:   Year 1 2 3 4 5 FCF​ ($ millions) 53.1 66.9 77.8 75.5 82.1   After your forecast​ horizon, you expect FCF to grow at 4.3% per year forever. If the weighted average cost of capital​ (dsicount rate) is 13.8%​, what is​: a. The enterprise value of Adidas. b. Assume Adidas has no excess​ cash, debt of $318 ​million, and 39 million shares​ outstanding, what is its stock​ price?       Question content area bottom Part 1 a. The enterprise value will be ​$enter your response here million. ​ (Round to two decimal​ places.)   b. The stock price will be ​$enter your response here. ​(Round to two decimal​ places.)

A company has two investment possibilities, with the following cash inflows: Investment Year 1 Year 2 Year 3 A $1,500 1,900 2,200 B $1,400 1,400 1,400 If the firm can earn 6 percent in other investments, what is the present value of investments A and B? Use Appendix B and Appendix D to answer the question. Round your answers to the nearest dollar.PV(Investment A): $  PV(Investment B): $   If each investment costs $4,000, is the present value of each investment greater than the cost of the investment?The present value of investment A is -Select-less than greater than Item 3 the cost.The present value of investment B is -Select-less than greater than Item 4 the cost.

A company has two investment possibilities, with the following cash inflows: Investment Year 1 Year 2 Year 3 A $1,000 1,400 1,800 B $1,700 1,700 1,700 If the firm can earn 6 percent in other investments, what is the present value of investments A and B? Use Appendix B and Appendix D to answer the question. Round your answers to the nearest dollar.PV(Investment A): $  __________PV(Investment B): $  __________ If each investment costs $4,000, is the present value of each investment greater than the cost of the investment? The present value of investment A is __less than___  / __greater than__ the cost. The present value of investment B is __less than___  / __greater than__ cost.