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NEW QUESTION: 1
An analyst is attempting to value shares Kingdom Semiconductor, a large silicon distributor. Assume the following information for Kingdom shares:
Required rate of return on equity: 16.25% per year
Free cash flow to equity multiple at t4: 32
2,500,000 shares outstanding
Additionally, the analyst has obtained the following estimates of free cash flow to equity for Kingdom over the next four years:
Year 1: $2,000,000
Year 2: $3,500,000
Year 3: $4,500,000
Year 4: $5,000,000
Using this information, what is the value per share of Kingdom Semiconductor according to the Free Cash Flow to Equity Model?
A. None of these answers is correct.
B. $39.02
C. $46.29
D. $35.69
E. The answer cannot be calculated from the information provided.
F. $44.74
Answer: B
Explanation:
Explanation/Reference:
Explanation:
When determining the value of a common stock using the free cash flow to equity model, it is necessary to determine three things:
1. The required rate of return on equity investments.
2. The estimated free cash flow to equity multiple at time "k."
3. The estimated free cash flows figures for the time periods leading up to "k." In this example, the calculation must begin with the discounting the free cash flow to equity figures for each of the four years provided. These figures are discounted each period by the required return on equity investments, and the final answer is converted to a per-share basis. This process is illustrated below:
Year 1: ($2,000,000 / 1.1625) / 2,500,000 shares outstanding = $0.69
Year 2: [$3,500,000 / (1.1625)(1.1625)] / 2,500,000 shares outstanding = $1.04 Year 3: [$4,500,000 / (1.1625)(1.1625)(1.1625)] / 2,500,000 shares outstanding = $1.15 Year 4: [$5,000,000 / (1.1625)(1.1625)(1.1625)(1.1625)] / 2,500,000 shares outstanding = $1.10 Now that the free cash-flow-to-equity figures have been discounted and converted to a per-share basis, the next step in the valuation process is to determine the value of the final cash flow, which is defined as:
[(Free cash flow to equity multiple * Final free cash flow) / (1 + r)(1+r)...(1 + k)] In the body of this question, we were given the anticipated multiple of free cash to equity that shares of Intelligent Semiconductor will sell for at time period: specifically 32 times. Imputing this information into the terminal cash flow equation will yield the following:
{[32 * ($5,000,000 / 2,500,000 shares outstanding)] / [(1.1625) (1.1625)(1.1625)(1.1625)]} = $35.04.
Adding the answers from step 1 to the final year cash flow will yield the following:
Value of Intelligent Semiconductor = [$0.69 + $1.04 + $1.15 + $1.10 + $35.04] = $39.02 per share.

NEW QUESTION: 2
複数のモニターをラップトップに接続するために最も使用される可能性が高いコネクタータイプはどれですか？ （2つ選択してください。）
A. 同軸
B. コンポーネント
C. DVI-D
D. DisplayPort
E. BNC
F. HDMI
Answer: D,F

NEW QUESTION: 3
Can you optimize FTP using Steelhead Mobile?
A. When using passive FTP
B. Only when there is no firewall enabled
C. Yes, this is possible on all FTP modes
D. It is not possible to optimize FTP traffic
E. When using active FTP
Answer: A

NEW QUESTION: 4
From the MFA Server blade, you open the Block/unblock users blade as shown in the exhibit.

What caused AlexW to be blocked?
A. The user reported a fraud alert when prompted for additional authentication.
B. The user account password expired.
C. An administrator manually blocked the user.
D. The user entered an incorrect PIN four times within 10 minutes.
Answer: C