What is Mulligan Motors Corporation\'s free cash flow for 20177 (1 point) a. b.

Question

What is Mulligan Motors Corporation's free cash flow for 20177 (1 point) a. b. H of the FCF did MMC use for each of the following purposes: after-tax interest payments, net debt repayments, dividend payments, n points) et stock repurchases, and net purchases of short-term investments? (s If MMC's WACC is 12% and FCF is expected to grow at a constant rate of 10% in the future, what is the intrinsic value per share of common equity? Assume 9,000 shares of common stock are outstanding as of year- end 2017. (4 points) C.

Explanation / Answer

2016 2017 Gross fixed assets $       95,200 $       1,32,800 Capex $       37,600 Current assets $       44,500 $           54,436 Current liabilities $       23,500 $           23,000 Net working capital $       21,000 $           31,436 EBIT $           48,330 EBIT(1-Taxes) $           28,998 + Depreciation $           19,920 - change in NWC $           10,436 -Capex $           37,600 a) FCF $                 882 b) Interest payments $             3,637 After tax interest payments $             2,182 Notes payable $       12,500 $             8,500 Long term debt $       35,000 $           40,000 Total debt $       47,500 $           48,500 Net debt repayment $           -1,000 Net income $           26,816 Increase in retained earnings $           24,116 Dividend $             2,700 Stock repurchases $             1,000 Net purchase of short term investments $           -1,400 c) FCF $                 882 R 12% g 10% Value of operations $           48,510 + value of short term investments $             6,400 -Debt $         -48,500 Value of equity $             6,410 No. of shares 9000 Price per share $           0.7122

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